Last week’s NFP showed that the US economy was contracting and even though we were expecting USD to strengthen, the opposite happened especially in the USDCAD pair. However, as it appears, the green back is now stepping on the gas pedal. On the daily chart from where I will be basing on my analysis, it’s obvious that today’s bearish candlestick was founded on that consolidation that begun on January 2. Notice that that candlestick closed above the upper BB and what we are actually witnessing is a correction which mind end up in the middle BB at around $1.18.
I have pasted a Fibonacci tool between Q4 2017 high lows and from the way it is, bulls are in charge. Potential correction zone and region where reversals might begin from is at the 61.8% retracement level and that is where we can see support at around $1.173 which also doubles as December lows.
I recommend trading as follows:
Stop Loss: 1.2080
Take Profit: 1.7000
Let me know what you think.