My picks: Long USD/CAD with Stop Below 1.1543
Expertise: Fundamentals Combined with Technicals
Average Time Frame of Trades: 1 Day - 1 Week
Last week I was selling AUDJPY, which has actually fallen well below my targets. While there's still bearish potential in this pair, I'm a bit wary about risk/reward potential in light of the pair's decline this morning.
In order to take advantage of further weakness in the commodity dollars, I'm currently long USDCAD with a stop below the week's low of 1.1543. 240 minute and daily charts of the pair show rising trendline support on hand at 1.1575, and resistance near 1.1710/23. The USDCAD range has been tightening more and more, which signals some potential for a breakout. As a result, I'm positioning myself for a break to the upside to target 1.1925 (the 100 SMA and 50% fib of 1.3065-1.0783).
