USD/CAD Continues Decline

By: Nadia Simmons & Przemyslaw Radomski | Thu, May 25, 2017
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Earlier today, USD/CAD broke below the 38.2% Fibonacci retracement. How low could the exchange rate go in the coming days?

In our opinion, the following forex trading positions are justified – summary:

EUR/USD: none
GBP/USD: none
USD/JPY: long (a stop-loss order at 107.62; the initial upside target at 111.16)
USD/CAD: none
USD/CHF: none
AUD/USD: none


EUR/USD

(Click to enlarge)

Looking at the daily chart, we see that although EUR/USD moved a bit higher earlier today, the exchange rate is still trading under 200% Fibonacci extension and the 70.7% Fibonacci retracement (marked on the weekly chart), which means that what we wrote yesterday is still valid:

(…) EUR/USD reached upside targets as we had expected. Although this is a bullish development, we should keep in mind that daily and weekly indicators are overbought and very close to generating sell signal, which increases the probability of reversal and lower values of EUR/USD in the coming days.

Very short-term outlook: mixed
Short-term outlook: mixed
MT outlook: mixed
LT outlook: mixed

Trading position (short-term; our opinion): No positions are justified from the risk/reward perspective at the moment.

GBP/USD



(Click to enlarge)

From today’s point of view, we see that although GBP/USD moved little lower earlier today, the pair remains in the blue consolidation above the upper border of the brown rising trend channel. Nevertheless, all indicators generated the sell signals, which suggests that reversal may be just around the corner. Therefore, if he pair drops under the lower border of the consolidation, the upper line of the brown rising trend channel and the red support line based on the previous lows, we’ll see further deterioration. In this case, we’ll likely open short positions.

Very short-term outlook: mixed with bearish bias
Short-term outlook: mixed with bearish bias
MT outlook: mixed with bearish bias
LT outlook: mixed

Trading position (short-term; our opinion): No positions are justified from the risk/reward perspective at the moment.

USD/CAD

 

(Click to enlarge)

On the daily chart, we see that USD/CAD broke below the 38.2% Fibonacci retracement based on the entire January-May upward move, which means that what we wrote about this currency pair on Monday is up-to-date:

(…) it seems to us that the par will extend losses and test the 38.2% Fibonacci retracement based on the entire January-May upward move. If this support is broken, we’ll see a decline to the next Fibonacci retracement and the lower border of the brown rising trend channel. However, the current position of the daily indictors indicates that reversal in the coming week should not surprise us.

Very short-term outlook: mixed with bearish bias
Short-term outlook: mixed
MT outlook: mixed
LT outlook: mixed

Trading position (short-term; our opinion): No positions are justified from the risk/reward perspective at the moment.

By Nadia Simmons & Przemyslaw Radomski for Safehaven.com


 

Nadia Simmons

Author: Nadia Simmons

Nadia Simmons
Sunshine Profits.com
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Nadia Simmons

Nadia is a private investor and trader, dealing in currencies, commodities (mainly crude oil), and stocks. Using her background in technical analysis, she spends countless hours identifying market trends, major support and resistance zones, breakouts and failures. In her writing, she presents complex ideas with clarity that enables you to easily understand market changes, and profit on them. Nadia is the person behind Sunshine Profits' 3 premium trading services: Forex Trading Alerts, Oil Trading Alerts Alerts, and Oil Investment Updates.

All essays, research and information found above represent analyses and opinions of Nadia Simmons and Sunshine Profits' associates only. As such, it may prove wrong and be a subject to change without notice. Opinions and analyses were based on data available to authors of respective essays at the time of writing. Although the information provided above is based on careful research and sources that are believed to be accurate, Nadia Simmons and his associates do not guarantee the accuracy or thoroughness of the data or information reported. The opinions published above are neither an offer nor a recommendation to purchase or sell any securities. Nadia Simmons is not a Registered Securities Advisor. By reading Nadia Simmons's reports you fully agree that he will not be held responsible or liable for any decisions you make regarding any information provided in these reports. Investing, trading and speculation in any financial markets may involve high risk of loss. Nadia Simmons, Sunshine Profits' employees and affiliates as well as members of their families may have a short or long position in any securities, including those mentioned in any of the reports or essays, and may make additional purchases and/or sales of those securities without notice.

Copyright © 2013-2017 Sunshine Profits

Przemyslaw Radomski

Author: Przemyslaw Radomski

Przemyslaw Radomski, CFA
Founder, Editor-in-chief
Gold & Silver Investment & Trading Website - SunshineProfits.com

Przemyslaw Radomski

Przemyslaw Radomski, CFA (PR) is a precious metals investor and analyst who takes advantage of the emotionality on the markets, and invites you to do the same.

His company, Sunshine Profits, publishes analytical software that anyone can use in order to get an accurate and unbiased view on the current situation.

Recognizing that predicting market behavior with 100% accuracy is a problem that may never be solved, PR has changed the world of trading and investing by enabling individuals to get easy access to the level of analysis that was once available only to institutions.

High quality and profitability of analytical tools available at www.SunshineProfits.com are results of time, thorough research and testing on PR's own capital.

PR believes that the greatest potential is currently in the precious metals sector. For that reason it is his main point of interest to help you make the most of that potential.

As a CFA charterholder, Przemyslaw Radomski shares the highest standards for professional excellence and ethics for the ultimate benefit of society.

Sunshine Profits enables anyone to forecast market changes with a level of accuracy that was once only available to closed-door institutions. It provides free trial access to its best investment tools (including lists of best gold stocks and best silver stocks), proprietary gold & silver indicators, buy & sell signals, weekly newsletter, and more. Seeing is believing.

Disclaimer: All essays, research and information found above represent analyses and opinions of Przemyslaw Radomski, CFA and Sunshine Profits' associates only. As such, it may prove wrong and be a subject to change without notice. Opinions and analyses were based on data available to authors of respective essays at the time of writing. Although the information provided above is based on careful research and sources that are believed to be accurate, Przemyslaw Radomski, CFA and his associates do not guarantee the accuracy or thoroughness of the data or information reported. The opinions published above are neither an offer nor a recommendation to purchase or sell any securities. Mr. Radomski is not a Registered Securities Advisor. By reading Przemyslaw Radomski's, CFA reports you fully agree that he will not be held responsible or liable for any decisions you make regarding any information provided in these reports. Investing, trading and speculation in any financial markets may involve high risk of loss. Przemyslaw Radomski, CFA, Sunshine Profits' employees and affiliates as well as members of their families may have a short or long position in any securities, including those mentioned in any of the reports or essays, and may make additional purchases and/or sales of those securities without notice.

Copyright © 2009-2017 Przemyslaw Radomski, CFA

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