USD/CAD: Trade ideas for August 05
The resistance level of 1.0943 has been quite strong in recent days for USDCAD, so it is very likely that this pair begins to make more extended corrective movements. The Loonie would have to make a breakout in the support level of 1.0887 (23.6 Fibo level), to fall to the level of 1.0853 (38.2 Fibo level), where the USDCAD may do a rebound to ride again the overall bullish trend.
Furthermore, the USDCAD may do a breakout at the level of 1.0853 and fall to the 50.0 Fibo level (1.0825), but this pair is strongly dominated by the bullish bias in bigger charts as the daily chart. However, keep in mind that corrective movements could last several days, due to the overbought levels that is having the USDCAD currently. The CCI indicator is pointing to the upward.
Trading recommendations: Wait for a retracement until the 38.2 Fibo level, in order to place long positions. At the moment, we don't recommend currently to trade this pair if you're intraday trader.