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Timing the Exit in the USD/CAD Fierce March Higher

Nadia Simmons

Have the bulls been able to add to their gains even more?

These were our Friday’s observations:

(…) Yesterday brought us verification of the breakout above the declining purple trend channel, suggesting that higher values of USD/CAD are just around the corner.

Should we see the pair rise from here, the first target for the bulls will be the last week’s peak and then the 61.8% Fibonacci retracement (at around 1.3232).

The situation indeed developed in tune with the above, and USD/CAD overcame not only the late-Oct high, but also the 61.8% Fibonacci retracement, making our long positions even more profitable.

Despite the pair pulling back yesterday, the bulls managed to keep the price action above the previously broken retracements . This suggests that yesterday’s drop could be nothing more than verification of the earlier breakout.

Should it be the case, the way to the 50% Fibonacci retracement (based on the entire May-July decline) or even the upper border of the declining red trend channel may be open.

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Thank you.

Nadia Simmons
Forex & Oil Trading Strategist
Sunshine Profits – Effective Investments through Diligence and Care

This article was originally posted on FX Empire

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