Fibonacci projections identify possible long entry
Ideal trades always occur when you have several
indicators lining up at the same time. As we all know indicators are typically
ineffective when used in isolation – the combination of several analysis
techniques is usually more robust.
Case in point, USD/CAD. First, for those not
aware, USD/CAD is positively correlated with the Dollar Index (DXC) – i.e. if
DXC is trading lower, it is highly likely that USD/CAD is too. The opposite is
true for EUR/USD.
That being said, the chart below suggests that on
a short-term basis, DXC has out in a low and will likely move higher.
In addition, our short-term reversal levels (STRL’s)
at 86.50 & 86.44 also suggest that short-term bottom is in place.
USD/CAD has almost an identical pattern.
Keep an eye on the 1.1330 level, it should offer
a decent long entry point.
As always, feel free to send
me your comments and questions.
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Dave Floyd is a professional FX and stock trader based in Bend, OR and the
President of Aspen Trading Group. Dave’s approach to FX combines technical
and fundamental analysis that results in trades that fall into the swing
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