$USD/CAD Approaching Critical Lows
Selling off from the yearly highs at 1.3000 for 34 of the last 51 days, we suggest selling 2 out of every 3 days. Momentum and CCI are diverging a bit but have not made any new highs suggesting that until they do, selling will make you more money than buying.
The fact that the pair has only had 3 days above the 20EMA since the beginning of April further highlights this fact. If you are looking to buy, there is a low risk buying opportunity around the yearly lows at 1.1475-ish with tight stops below.
Until we see price action close above the 20EMA and Kijun line, we expect selling to continue and a possible move towards 1.1000 and 1.0800 which was the highs leading into October 2008 before the pair launched up towards 1.3000 in a mad 3 week sprint. Sell on rallies or daily closes below 1.1459.
Figure 1: USD/CAD Daily Chart
Chris Capre is the Founder of Second Skies LLC which specializes in Trading Systems, Private Mentoring and Advisory services. He has worked for one of the largest retail brokers in the FX market (FXCM) and is now the Fund Manager for White Knight Investments (www.whiteknightfxi.com/index.html). For more information about his services or his company, visit www.2ndskies.com.