The Canadian dollar fell to the US currency after Canada's unemployment rate surprisingly rose for the first time this year. The unemployment rate rose to 7.0% from 6.9% while full-time employment declined by 54,900.
Price action on USD/CAD spiked down to 1.0903 and quickly reversed higher to the session highs after the employment release. With price hovering around the 1.0942 area, it appears price will have snapped a 5-week losing streak. Bullish momentum may continue early into next week and we may see price attempt recapturing the 1.11 handle.
With only one hour left in European trade, traders may not see too much volatility closing out the week. I will loook to see if the bullish stance will continue early next week and see if price will make a run towards the 1.10 handle first. It is around that area we could see the formation of a bearish ABCD pattern.
The Trade: Buy USDCAD 1.0935, Stop loss 1.0895, and a take profit 1.0995. Risk Reward Ratio is 2:3
Edward J. Moya
WorldWideMarkets Online Trading