Last week we did an update on selling the CAD against the USD, EUR and GBP but the CAD continued to firm but we are expecting it now to fall back from its bullish extreme. Swing trading long USD/CAD, EUR/CAD and GBP/CAD in our view offer good risk to reward trades. Below our view of the key technical support and resistance levels in all 3 pairs:
USD/CAD
We have made 3 lower daily lows but have bounced from today’s low and we are looking at today’s low as the possible exhaustion of selling. We view the USD as a buy back above nearby resistance which is also a move back above key monthly resistance, with a stop well back from today’s low. If we break resistance, we would expect immediate follow-through buying on high volatility to the upside.
GBP/CAD
We have already bottomed in this pair and a breakout above nearby resistance is a buy in our view with a stop behind nearby support. We expect a major move to the upside which we are looking for a move to retrace the whole big April sell off.
EUR/CAD
We view Friday’s strong blue candle as a potential warning of a trend reversal to the upside. A break of nearby resistance is expected to follow through strongly to the upside to correct the EUR’s oversold condition.
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