USD/CAD 62% Fibonacci Level Holds
Shain Vernier • 2 min read
At the halfway point of the Monday U.S. session, equities markets are down modestly, as are commodities. In fact, prices are on the slide across the board, with most investors electing to take it easy for the U.S. Veteran’s Day holiday. The forex majors are seeing mixed action, with participation being largely muted. One pair that has traded in a tight range is the USD/CAD, as rates are just above 1.3200 and challenging a critical Fibonacci resistance level.
Today’s economic calendar for the U.S. session has been bare due to the observance of Veteran’s Day. However, Boston FED chief Eric Rosengren issued a few public comments earlier. A dissenter in October’s FED rate cut vote, Rosengren reinforced that the U.S. economy is in solid shape in regards to growth performance. He also doubled down on his view that October’s rate cut wasn’t needed. All in all, the comments did little to move the forex as most traders are looking towards Wednesday’s U.S. CPI numbers for answers on inflation.
For the USD/CAD, the action has been tight and rates are holding firm at a key Fibonacci resistance level.
USD/CAD Challenging 62% Macro Resistance Level
Today’s session has been muted one for the USD/CAD. Rates have ticked sideways and continue to hold above 1.3200.
Here are two levels to watch going into the Tuesday forex session:
- Resistance(1): 62% Macro Retracement, 1.3229
- Support(1): Bollinger MP, 1.3162
Bottom Line: The quiet action on the forex today has largely been a product of the U.S. Veterans Day holiday. Subsequently, volatility on the currency markets has been limited as traders have taken a risk-off view to most assets.
However, there is currently a shorting opportunity on the board for the Loonie. As of press time (about 1:00 PM EST), I will be holding a short position in the USD/CAD. With a stop loss above Friday’s high at 1.3241, sells from anywhere in the 1.3210-1.3220 range produces 21-31 pips on a standard 1:1 risk vs reward ratio.