PRICE ACTION STILL CONSTRUCTIVE DESPITE LATEST PULLBACKS; BUY @1.2100
Techs – Usd/Cad: Despite the sharp pullbacks seen on Thursday, the overall structure still remains quite constructive with the market posting a series of medium-term higher lows over the past several months. A fresh higher low is now sought out by 1.1980 (16Apr low) ahead of the next major upside extension back above 1.3065 over the coming weeks. As such, we recommend looking to buy into the current pullback with additional weakness seen limited to the 1.2100 area which also coincides with the projected “Average True Range” (ATR) low for Friday, along with the 78.6% fib retracement off of the 1.1980-1.2510 recent move. Strategy: BUY @1.2100 FOR A 1.2500 OBJECTIVE, STOP @1.1950. Stops to be trailed to cost on a break back above 1.2150. If trade triggers and 1.2150 not broken, position to be closed out at NY close on Friday. Recommendation to be removed if not triggered by NY close on Friday.
Written by Joel Kruger, Technical Currency Strategist for DailyFX.com
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