USD | CAD fell sharply in the beginning of European session. If the decline continues, the price will be on very attractive levels, making use of which is recommended after the completion of USD decline impulse, which is expected to lower in the nearest 2 days.
Turnout of the pair can happen in the area of 1.0015 (closing January and the level of 50% of the growth impulse), or in an area of 0.9925 (closure of a three-year cycle), but, in any case, the couple is directed towards the growth and each time of correction opening of long positions is recommended.
Monetary authorities of Canada started lowering the interest rate, following the United States, but unlike America in Canada inflation is at an acceptable level, which will let resumption of lowering rates for several years.
Before the opening positions to buy the pair, it is recommended to wait until EUR | USD stabilizes in the region of 1.62 as the lowering of the dollar could lead to a decline in USD | CAD to even more attractive levels.
Last edited by PipDiddy; 04-16-2008 at 07:21 AM.
Reason: Link Violation
USD/CAD Weekly Outlook
USD/CAD's sharp fall extended continued last week and dropped to as low as 1.0793, inch above 1.0784 support. Initial bias will remain on the downside this week as long as 1.0923 minor resistance holds. As discussed before, decline from 1.1723 is now treated as resumption of the whole fall from 1.3063 and break of 1.0784 will target 61.8% retracement of 0.9056 to 1.3063 at 1.0587 next. On the upside, above 1.0923 will turn intraday outlook neutral and bring consolidation first. But recovery is expected to be limited by 1.2230 resistance and bring fall resumption.