USD CAD Establishing Support Near Retracement Zone

Lower energy prices and uncertain equity markets are helping to supportthe USD CAD this morning.  The recent weakness in the crude oil marketis expected to put pressure on the Canadian economy.

Lower energy prices and uncertain equity markets are helping to support the USD CAD this morning.  The recent weakness in the crude oil market is expected to put pressure on the Canadian economy.

This morning the USD CAD is trying to establish a higher bottom on the charts.  Based on the 1.0589 to 1.0991 range, a key retracement zone has been set up at 1.0790 to 1.0743.  

The market tried to test 1.0790 but buyers came in early at 1.0793.  If this area holds as support then look for a rally to start which could take the market back to 1.0991. 

A breakout through this level will turn the main trend to up and set up the market for a further rally to perhaps the next upside target at 1.1156.

James A. Hyerczyk has been actively involved in the futures markets since 1982. He has worked in various capacities within the futures industry from technical analyst to commodity trading advisor. Using W. D. Gann Theory as his core methodology, Mr. Hyerczyk incorporates combinations of pattern, price and time to develop his daily, weekly and monthly analysis. His firm, J.A.H. Research and Trading publishes The Forex Pattern Price Time Report... More

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