- USD/CAD unwinding from recent 11 year high at 1.3457 posted in Sept continues
- Pair opened Noram markets 1.3366, -50 pips vs the previous close, day’s range 1.3331/3251
- Brent crude oil higher on the day, up 1.6%, CAD benefits from rise in oil prices, USD/CAD currently trades at 1.3271
- Short-term correction likely as prices are at oversold levels, daily Kijun at 1.3234 likely target
- Overall momentum still bullish, Tenkan & kijun lines are positively aligned, highlighting the upside potential
- A monthly close above 1.3470 (the 61.8% retrace of 1.6197-0.9059 2002 to 2007 fall) to keep the overall bias on the upside
- Markets focus on a raft of US data in the pipeline, including jobless claims & ISM manufacturing survey for direction
Resistance Levels:R1: 1.3331 (Session High Oct 1)R2: 1.3431 (Daily High Sep 30)R3: 1.3457 (2015 High Sep 29)Support Levels:S1: 1.3234 (Kijun-Sen)S2: 1.3233 (Daily Low Sep 23)S3: 1.3220 (Daily Low Sep 22)
The material has been provided by InstaForex Company – www.instaforex.com