- Daily: The USD/CAD pair is surging, and has a chance to reach the 1.09 level. That is a swing projection and judging from the stochastic, is only a conservative one.
- The stochastic shows that momentum has turned bullish, and so our current swing may be a 3rd wave, while the previous upswing was the 1st.
- If the more dynamic 3rd wave reaches 138.2% the market would test the 1.11 level, where there may be some resistance. A break would find some resistance too at the 1.1250 area.
- Then a wave IV, which on the chart is assumed to be 38.2% retracement, supported at 1.089, and a possible flat. A zig zag is possible too, but must be supported above 1.075.
- Then a terminal wave to follow with projection of wave 1 length, would target 1.14/1.15 area.
Fan Yang
Currency Analyst
Commodity Trading Advisor
Information and opinions contained in this report are for educational purposes only and do not constitute an investment advice. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness. CMS will not accept liability for any loss of profit or damage which may arise directly, indirectly or consequently from use of or reliance on the trading set-ups or any accompanying chart analyses.
Foreign currency trading is not conducted on an exchange. CMS is acting as a counterparty to its clients’ transactions and as a result, CMS’ interests may be in conflict with its clients. Since CMS acts as the buyer or seller in the transaction one should carefully evaluate any trade recommendation provided by CMS or any of its solicitors. Foreign currency trading involves a substantial risk of loss and may not be suitable for all investors.
All screenshots are made from VT Trader 2.0 and are of actual market data at the time of the screenshot.
