USD/CAD Challenges 38% Fibonacci Level - Forex News by FX Leaders

USD/CAD Challenges 38% Fibonacci Level

Posted Thursday, January 24, 2019 by
Shain Vernier • 1 min read

Fibonacci numbers are applied to active trading in a variety of ways. Retracements, circles, expansions, and time extensions are a few of the most common. Without a doubt, Fibonacci tools have an enormous fan base among active traders.

Over the past week or so, I have highlighted the importance of a key 38% Fibonacci retracement level (1.3366) for the USD/CAD. Over the last 24 hours, it has been under siege by bidders and has held its ground.

USD/CAD Technical Outlook

On the daily chart, the USD/CAD shows an obvious bearish trend followed by a measured retracement. Buyers are in the process of challenging the late-2018/early-2019 plunge. In the event the 38% Current Wave Retracement (1.3366) continues to prove valid, this market will likely gravitate toward the Double-Bottom (1.3180-83) over the intermediate-term. If not, the odds of a meaningful recovery increase exponentially.

USD/CAD, Daily Chart
USD/CAD, Daily Chart

Overview: One week ago, I issued a trade recommendation for shorting the USD/CAD. The short position turned out to be a success. If you missed the article, check it out here.

The next week is going to be a pivotal one for the USD/CAD. GDP, Core Personal Consumption, and a FED policy statement are the primary market drivers scheduled. Participation levels are certain to be strong. Without a doubt, the 38% Fibonacci retracement (1.3366) level is one to remain aware of moving forward.

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About the author

Shain Vernier // US Analyst
Shain Vernier has spent over 7 years in the market as a professional futures, options and forex trader. He holds a B.Sc. in Business Finance from the University of Montana. Shain's career includes stretches with several proprietary trading firms in addition to actively managing his own accounts. Before joining FX Leaders, he worked as a market analyst and financial writer.
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