Timing the Exit in the USD/CAD Fierce March HigherWe’ve discussed the loonie on Friday, just when the pair spiked higher. What has happened with our profitable open position since then?
Have the bulls been able to add to their gains even more?
These were our Friday’s observations:
(…) Yesterday brought us verification of the breakout above the declining purple trend channel, suggesting that higher values of USD/CAD are just around the corner.
Should we see the pair rise from here, the first target for the bulls will be the last week’s peak and then the 61.8% Fibonacci retracement (at around 1.3232).
The situation indeed developed in tune with the above, and USD/CAD overcame not only the late-Oct high, but also the 61.8% Fibonacci retracement, making our long positions even more profitable.
Despite the pair pulling back yesterday, the bulls managed to keep the price action above the previously broken retracements . This suggests that yesterday’s drop could be nothing more than verification of the earlier breakout.
Should it be the case, the way to the 50% Fibonacci retracement (based on the entire May-July decline) or even the upper border of the declining red trend channel may be open.
If you enjoyed the above analysis and would like to receive daily premium follow-ups, we encourage you to sign up for our Forex Trading Alerts to also benefit from the trading action we describe – the moment it happens. The full analysis includes more details about our current positions and levels to watch before deciding to open any new ones or where to close existing ones. Check more of our free articles on our website – just drop by and have a look. We encourage you to sign up for our daily newsletter, too – it’s free and if you don’t like it, you can unsubscribe with just 2 clicks. If you sign up today, you’ll also get 7 days of free access to our premium daily Gold & Silver Trading Alerts. Sign up for the free newsletter today!
Forex & Oil Trading Strategist
Sunshine Profits – Effective Investments through Diligence and Care