The USD/CAD has been dropping since May and has showed no sign of stopping. I do believe we are due for a correction soon. I felt the Canadian dollar was overbought when we reached our first support point at 1.3000 area. That's when I started getting involved with buying. We have fallen through a couple support points since then, and we are currently at another more important support point.
Next week we have a very important schedule ahead of us... We have the FOMC Statement and Federal Funds rate on Wednesday July 26. On Thursday we have the US unemployment claims. Let hope price finds some stability until the announcement. With the proper support and some good news, we can expect to see the rise we've been long waiting for.
The picture I have attached shows our fibonacci circles outlining all of the our past and future support and resistance points. I like to trade using this tool and with a contrarian mentality. I go against the trend because I don't believe the trend to be my friend. The trend will stab you in the back when you least expect. Therefore, I never trust the bastard.
So! How am I going about all this craziness? Well here's my plan on this.... I've been planting my Buy seeds all along this drop from 1.3000 to where we are now... We are curently at an important support point... Let's hope we find the strength we need to reach 1.3400. When price reaches 1.3400, we will harvest our crop. Keep your leverage low and you will survive...
Let me know your thoughts and opinions. If there is another currency you would like to see analyzed, feel free to request.
Thanks for reading!
