While major currency pairs have reached some critical levels from where break on both sides seems quite possible, USDCAD seems to continue its journey in downward trend and thus getting stronger against US Dollar.
Looking at the current trend, it is looking to clearly break below 0.9600 level this week. The traders will be hoping to get USDCAD around 0.9700 level so that they can sell it for initial targets around 0.9600 level.
The retracement can extend as high as 0.9750 level and some traders might look to average out the first position around this level or conservative traders might wait and hope to get entry level around 0.9750 level. In case USDCAD manages to break the 0.9750 level, then we might see a short term reversal towards 0.9850 level therefore use of decent stop is highly recommended.
The RSI is currently around 37 in daily charts, suggesting that it has some space for USDCAD to make dip towards 0.9600 level but it doesn’t seem to have enough space for USDCAD to make a break below 0.9600 level in the first go and will take some retracement before breaking 0.9600 level and this will provide some good selling opportunities for traders working on all time-frames.
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