USDCAD - Temporarily Sell at 1.3085 and 1.3117 (stop 1.3149)

20 Mar 2018

Early gains to new 9 month highs were in line with this week’s bullish outlook. But with USDCAD above 1.3100, and at overbought extremes, profit taking developed. The resulting setback was not a deep one but strong enough to indicate scope for a deeper, though temporary, decline. So, with caution, this morning’s call is a Sell at 1.3085 but leaving room to Sell any Rally to 1.3117. The risk is 1.3149 with an immediate target of 1.3065. A move through that point then exposes sentiment to 1.3046, yesterday's low, and 1.3004, Thursday’s Marabuzo line.