Tuesday, June 19, 2018

The Powerful USD/CAD Rally Continues

 Contrary to my expectations for a depreciation, after the breakout above the resistance around 1.2990 – 1.30 the USD/CAD pair continued rallying and is now at 1.3280.

The noticeable thing is that despite the large rally the trend does not show any signs of exhaustion. In my opinion, there are no trustworthy signals even for an impending corrective depreciation – neither the bars hint at that, nor does the RSI indicator. The RSI divergence is only on the H1 time frame, but in my opinion it has not been confirmed for the moment and it is not particularly trustworthy, so it is not very likely to come to fruition.

Under these circumstances it’s prudent to keep long positions with the appropriate Stop Loss that protects one’s profits and account.

I think that even if there is a correction in the future it won’t be very deep and the visible target of the rally is around 1.3690 – 1.3700.