The USD/CAD pair traded heavily on Wednesday with a 200+ pips range dragging lower and we believe there is more to be seen on the lower side. We prefer to see USD/CAD testing around 291X zone and like to initiate buys off there for it seems like a decent zone to end the correction.
Rising oil price along with the surge in gold and falling US dollar contributed to the heavy tone the pair took in early Asia, which continued throughout the day. With a daily close under 1.3000 psychological level, expectations are for it to reach and test our intended zone to try longs.
With nothing much on news for today for the CAD, 3025-30 is resistance and if aggressive can short from there with main target to 291X zone. Alternatively, this later level comes in as a decent spot which can signal an end to the correction and march back higher.
Hence, we like to try longs if the price gets a test to 2905-10 for a possible move back to T1 with a potential run higher for newer yearly highs.
T2 comes in as a decent zone to try longs for a T1 test.