FX CHART OF THE DAY: USDCAD LONG (UPTREND PROBABILITY)
USDCAD has broken above the 1st standard deviation from its weekly (120-hour) mean on Wednesday (June 22) amid highly compressed volatility.
Since then USDCAD trades above the 1st st deviation, while the weekly volatility shows clear expansion, which indicates more upside probability purely on technical basis.
It is thus possible to look for long positions at pullbacks to the upper 1st standard deviation from the 120-h mean (now at 1.3015), with stops right at the mean itself (now at 1.2980).
Traders should also consider news events coming out 12:30 GMT (Canadian Retail Sales and US Jobless Claims), which can trigger unexpected price volatility on USDCAD.
Since then USDCAD trades above the 1st st deviation, while the weekly volatility shows clear expansion, which indicates more upside probability purely on technical basis.
It is thus possible to look for long positions at pullbacks to the upper 1st standard deviation from the 120-h mean (now at 1.3015), with stops right at the mean itself (now at 1.2980).
Traders should also consider news events coming out 12:30 GMT (Canadian Retail Sales and US Jobless Claims), which can trigger unexpected price volatility on USDCAD.