My picks: Long USD/CAD with Stop Below 1.1100
Expertise: Fundamentals Combined With Technicals
Average Time Frame of Trades: 1 Day - 1 Week
This morning I bought USDCAD as the pair continues to consolidate above the 61.8% fib of 1.0783-1.1723 at 1.1146, and I've placed a stop below 1.1100. I'm looking to 1.1350 and 1.1420 as potential targets (the 38.2% and 50% fibs of 1.1723-1.1118). From a fundamental perspective, today's Canadian CPI results should work in favor of this trade, but a sharper decline in equities would be even more favorable as heightened risk aversion would drive up demand for the US dollar.
