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Coleman: Sell USDCAD as gains are limited
Ian Coleman from First 4 Trading is looking to sell USDCAD as he says gains are limited. He is expecting limited movement in the dollar index as it's still stuck between support and resistance.
He adds that USDCAD has been "stuck within the symmetrical triangle formation", as intraday trading remains mixed and volatile. In addition, the intraday exhaustion level at 261.8% located at 1.0700 has held back bullish price action on eight occasions in the last 23 trading days.
As a result, he is looking to sell in front of 1.0700 with a stop at 1.0725. Targets are 1.0660 and 1.0640.
The Canadian dollar, also known as the loonie, fell on Monday after Finance Minister Jim Flaherty said Canada may post a bigger budget surplus than forecast in the 2015-2016 fiscal year and its manufacturers will be aided by a currency that the central bank head says may weaken.
Bank of Canada Governor Stephen Poloz told Flaherty and the provincial finance ministers the loonie may weaken when he spoke at a meeting on 16 December 2013.
01:39 minutes
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