Dollar/Cad Buy Recommendation Re-Issued @1.1780

DOLLAR/CAD DIPS BELOW 1.1800 SEEN LIMITED; BUY @1.1780

Techs – Usd/Cad: Has pulled back quite sharply over the past several days with the market breaking to fresh multi-day lows below the 200-Day SMA to 1.1800 thus far. While the current pullback changes the picture somewhat, the broader structure still remains constructive with the market locked in a longer-term bullish consolidation dating back to October of 2008. As such, any dips towards the bottom of the range should be used as opportunities to establish long positions in anticipation of a move back into the mid-range at a minimum. We recommended this trade on Thursday and Friday but our entry level was not hit. We will look to get involved today and pick up some USDs on a dip into the previous support zone from early January (see Jan6-12 lows). Strategy: BUY @1.1780 FOR A 1.2270 OBJECTIVE, STOP @1.1630. Stops to be trailed to cost on a break back above 1.1830. Stops to be trailed to cost on a break back above 1.1830. If trade triggers and 1.1830 not broken, position to be closed out at NY close (5pm NY time) on Monday. Recommendation to be removed if not triggered by NY close on Monday.

Written by Joel Kruger, Technical Currency Strategist for DailyFX.com
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