Chart Prepared by Jamie Saettele, CMT
FOREXObservations: The USDCAD failed to close above the 38.2% retracement of the decline from the October 2011 high on Friday, and price has reacted minimally today. Still, the response at the retracement and the specter of 5 waves up from 9632 suggests that those banking on a breakout exercise extra caution. The 11/7 low at 9874 is the key pivot at this point.
FOREXTrading Strategy Implications: 9950 is potential support on a dip but a cautious bullish bias is warranted as long as price is above 9874. A drop below would probably lead to a deeper correction of the rally from 9632 towards 9786 or 9719. 10084 and 10159 come into play if price can clear Friday’s high (same inside day trading rules described in EURUSD section apply).
LEVELS: 9874 9910 9950/65 10033 10084 10159
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