The pick of the day is the Loonie, forex geek name for Canadian dollar as it dances against Ms. USA. I’m eyeing USDCAD because on Friday we will have Canada’s GDP reports where a better than expected reading will strengthen the currency, causing USD/CAD to move lower. In addition to that we will hear from US pending home sales as well which could shake the US dollar up a bit.
On the daily forex dance floor, the pair still hasn’t broken through the resistance level of 1.11867. With the readings tomorrow, if the pair confirms a break above this level we could expect more gains towards the highs of 2009 in the 1.15 area. Otherwise we will see a bearish movement with exit targets at Fibonacci levels at 1.09580, 1.08202 and 1.07019. Don’t forget to wait for a confirmation before you make a trading decision and keep the market sentiment in mind as well.
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