- A far more aggressive rally than expected and a fully re-energized bull theme with the acceleration last week through the pivot area at 1.0285/95, better barriers at 1.0385/90 and the peaks at 1.0421 & 1.0446 on Friday.
- This now sets up risk for still further upside to a key cyclical target from 2011 at 1.0523 this week, likely today and then maybe to 1.0657, the 2011 secular high.
- Overshoot risk is 1.0854, the 2010 high.
- The 8-day RSI, short-term momentum is positive, but not particularly OB, leaving scope to go higher this week.
- Below 1.0385 eases bull risks; through 1.0280 signals a more neutral tone, only shifting negative below 1.0135.
WHAT CHANGES THIS?
USD/CAD: Weekly" width="602" height="388"> Risk Statement: Trading Foreign Exchange on margin carries a high level of risk and may not be suitable for all investors. The possibility exists that you could lose more than your initial deposit. The high degree of leverage can work against you as well as for you.