USDCAD rejected at the supply zone 1.2920-1.3000 on Tuesday and has changed the direction sharply. Today’s catalyst is the Canada employment data.
Since April we have been publishing the weekly chart pack which summarizes forex market trends and provides some insights about the near-term trading patterns. For USDCAD we forecasted a bearish view and finally, the patience is paying now. Ahead of today’s job data, the price tested the 100EA and 50.0% fib reaction (1.2527-1.3000 rally).
After the recent retracement, we are shifting our near-term view from bearish to neutral/bullish. The cross has a potential support zone finds between 1.2665-1.2623. Buying in a dip (between 1.2665-1.2625) for targets at 1.2840 and 1.2900 levels. To limit the risk we recommend to use the stop loss below recent swing low 1.2525.
View: Buy the dip
Also read: EURCAD buying plan
It is important to always keep in mind the risks involved in trading with leveraged instruments.
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