Recommendation: BUY
Current Trend: Short-term up. Med-term sideways.
Strategy: Buy at current levels or better.
- The USDCAD broke out above line 2 (of a channel with line 1) and has a higher short-term target in place. That target is 1.2750/1.2760, based on the height of the channel.
- Channel 1-2 is also a potential right shoulder of a med-term inverse head and shoulders (S-H-S?). If so, then this currency pair has a lot more upside potential. This is something we’ll be monitoring closely.
- For now, buy at current levels or better. And take profits at its short-term target 1.2750/1.2760.
- Its short-term stop is a close above 1.2550 initially. From 1.2700 bring the stop up to below line 2 (1.2600). And from 1.2730 use a breaking of its prior one day low as a trailing stop.
To subscribe to more research by Colin please go to his website www.themarket.co.za
COPYRIGHT:
THIS NEWSLETTER IS TO BE READ ONLY BY CLIENTS OF GLOBAL TRADER. UNDER NO CIRCUMSTANCES IS IT TO BE SHOWN (OR GIVEN) IN PHYSICAL OR ELECTRONIC FORM TO ANY OTHER PERSON, WITHOUT THE PRIOR CONSENT OF THEMARKET.CO.ZA. FURTHERMORE, ELECTRONIC TRANSMISSION (EMAIL), REPRODUCING, AND/OR DISSEMINATING THIS DOCUMENT (OR PART THEREOF) IN ANY OTHER MANNER WITHOUT THE WRITTEN CONSENT OF THEMARKET.CO.ZA IS A VIOLATION OF THE COPYRIGHT LAW - AND IS ILLEGAL.
