USDCAD – Buy at 1.2845 and 1.2813 (stop 1.2782)
A sequence of 4 up days ended yesterday. New 3 week highs were posted in Asia but the latter part of the day saw USDCAD consolidate in a narrow range at overbought extremes. The net result was only minor movement and this price action does not create strong signals for sentiment going into Wednesday. However, the undertone continues to be assessed as positive and so, with caution, our call for this morning is a Buy at 1.2845 but leaving room to also Buy any Dip to 1.2813, yesterday’s low. The risk is 1.2782, this week’s open, with an immediate target of 1.2861, this week’s peak. A move through that point then exposes sentiment to 1.2884, this month’s open, or even 1.2925.