The USDCAD bounced roughly 100 pips yesterday off the low end of the past 6 week range, and is poised for a volatility spike Friday on the widely anticipated Non-Farm Payrolls (NFP) release. With the US Dollar increasingly showing signs of trying to make a medium term bottom (as seen on a 1 year daily and 5 year weekly chart of $USD on stockcharts.com), the USDCAD continues to be my preferred FX pair for trading on the long side of the US Dollar as it's shown greater strength since September than the other USD-base currency FX pairs in myWatchlist . The weekly, daily and 4hr RSI, Stochastics and MACD are bottomish, rallying or consolidating recent gains. I am looking to go long in the green zone (of the daily chart), targeting the red zone for Friday (ahead of NFP). The amber/yellow zone is where I might place a stop if I was a swing trader (although in my personal account with which I seldom hold overnight I set my stops tighter).
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