USDCAD Technical Analysis – WC 4th January 2013 – Inside Day At Parity
- The USDCAD pair has retraced back to the 50% corrective level of the last swing higher and price is now aligned with the 200 day SMA (simple moving average).
- An inside day has formed just under parity after price was caught in a tight range on Friday, between 0.9963 – 1.0002.
- Inside day breakouts can often lead to false moves prior to the real deal. With this in mind the lower time frame price action can often tip the markets hand. False breakout plays can also provide interesting setups if other technical elements align.
- Any sustained break higher has the 1.0050 area PPZ as an initial focus with the recent highs around 1.0098 on any extended move.
- To the downside the 61.8% and 38.2% Fibonacci levels are aligned around 0.9920, further to this is the 50% retrace aligned with a price pivot around 0.9864.
- The Canadian Dollar (CME) net long position came in at 35K versus the 57K seen in the last COT report. This weeks update from the Commodity Futures Trading Commission (CFTC) captures positioning as of January 29, 2013. The aggregate CAD long position is the smallest recorded since August 2012.
USDCAD Technical Update – WC 4th January