What's up, everyone? Planning to take any Loonie trades today?
As for me, I'm currently looking at the rising channel on USD/CAD's 4-hour time frame because the bottom held yesterday. I thought it was gonna break because of all that US dollar selling when Fitch gave them a warning about their debt ceiling!
I guess it's probably because traders are also reluctant to buy the Canadian dollar since Canada just printed a weak retail sales report yesterday.
In terms of techs, there's a bit of bullish divergence. Stochastics already crossed but haven't really climbed out of the oversold zone just yet, so it might be safer to wait for that. There's also a doji and a spinning top right at the bottom of the channel.
What do you guys think?
If I were to go long (maybe during the US session?), I will aim for the top of the channel around .9900 to .9950. My stop should be below the channel and the .9700 handle.
Anyone with me on this or is my analysis off?
Again, don't be afraid to share your thoughts!