CAD spent yesterday's session fluctuating around 0.9950, where trading continues to be slow within narrow ranges. We have been in this slow conditions since a while, where volatility has decreased dramatically and that is clear on the narrowing Bollinger bands Indicators, such narrow trading conditions are always followed by price explosion and major directional moves. Having said that; we will concentrate on the longer term outlook and neglect intraday moves, where some bullish price exhaustion sings have appeared on momentum indicators in the form of Bullish divergence, in addition to the falling wedge pattern shown on chart. Therefore, we anticipate a move to the upside within the coming sessions. Taking into consideration that 0.9890 should remain intact over daily closing basis.
The trading range for the day is expected among the key support at 0.9890 and the key resistance at 1.0070.
The short term trend is to the upside targeting 1.0650 with steady daily closing above 0.9900.
|Recommendation||Based on the charts and explanations above, we recommend buying the pair around 0.9925 targeting 1.0070 and 1.0150, stop loss daily closing below 0.9890.|