22 Jan 2015
USD/CAD: Looking to get long, targets 1.2390, 1.2670 - 2ndSkies
FXStreet (Bali) - Following the shocking announcement by the BoC to cut rate from 1% to 0.75%, according to Chris Capre, Founder at 2ndSkies, for now the market is in a weak corrective pullback, suggesting that looking to get long remains the near term play.
Key Quotes
"While most traders expected the BOC to hike rates this year, they cut from 1.00 to .75%. This pushed the USDCAD up +300 pips in just a couple hours."
"For now the market is in a weak corrective pullback, so we are looking to get long. A deep pullback towards the prior intra-day resistance at 1.2115 seems unlikely within the next 24hrs, but naturally I'd be open to buy there. Intra-day charts suggest 1.2272 may hold a weak test, so that could be an alternate place to get long on corrective price action leading into it."
"Upside targets are 1.2390 and 1.2670 which is the role reversal level from 2004/2005."
Key Quotes
"While most traders expected the BOC to hike rates this year, they cut from 1.00 to .75%. This pushed the USDCAD up +300 pips in just a couple hours."
"For now the market is in a weak corrective pullback, so we are looking to get long. A deep pullback towards the prior intra-day resistance at 1.2115 seems unlikely within the next 24hrs, but naturally I'd be open to buy there. Intra-day charts suggest 1.2272 may hold a weak test, so that could be an alternate place to get long on corrective price action leading into it."
"Upside targets are 1.2390 and 1.2670 which is the role reversal level from 2004/2005."