In our original posting we proposed the idea of entering a short-hedge at 1.0790 (61.8% Fib resistance) for those who are seeking to enter long at a more favorable price or for those already holding a long position. USDCAD has moved closer to our limit-entry by about 52 pips since then. Momentum may push the pair upwards towards resistance by the end of the week on the release of the University of Michigan Confidence Index. A third straight increase in the metric may come as declining fuel prices have offered consumers greater spending power.
Created Using FX Trek IntelliChart – Prepared by Luis Gil Written By Luis Gil, DailyFX.com
E-mail: lgil@fxcm.com