- “USDCAD has fallen apart which ironically means it is probably going to find some sort of low soon. The rate is nearing important price levels. The 2011 high at 1.0657 and current year open at 1.0634 are possible supports. The line that extends off of the 2012 and September 2013 lows is at about 1.0607 next week. This level is in line with the July 2013 high at 1.0608.” USDCAD ended up finding low at 1.0620.
- The USDCAD advance from the July low is impulsive and may find resistance near 1.1025/50 (61.8% and June high) before correcting lower.
USDCAD forecasts for 25th of August:
The USD/CAD pair went back and forth on Friday, initially trying to break out but finding the 1.10 level too resistive yet again and formed a shooting star. The shooting star courses negative, but we do not look at it as a selling opportunity. We believe that this is a pullback to the 1.09 level waiting to happen, and that a buying opportunity below will happen. We are simply on the sidelines right now waiting for supportive candle below, or a daily close above the 1.10 level in order to start buying again.
