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Timing the exit in the USD/CAD fierce March higher

Commentaries & Views

We’ve discussed the loonie on Friday, just when the pair spiked higher. What has happened with our profitable open position since then? Have the bulls been able to add to their gains even more?

These were our Friday’s observations:

(…) Yesterday brought us verification of the breakout above the declining purple trend channel, suggesting that higher values of USD/CAD are just around the corner.

Should we see the pair rise from here, the first target for the bulls will be the last week’s peak and then the 61.8% Fibonacci retracement (at around 1.3232).

The situation indeed developed in tune with the above, and USD/CAD overcame not only the late-Oct high, but also the 61.8% Fibonacci retracement, making our long positions even more profitable.

Despite the pair pulling back yesterday, the bulls managed to keep the price action above the previously broken retracements . This suggests that yesterday’s drop could be nothing more than verification of the earlier breakout.

Should it be the case, the way to the 50% Fibonacci retracement (based on the entire May-July decline) or even the upper border of the declining red trend channel may be open.

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Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.