Beyond that, there is the possibility that we could see a bit of a “golden cross”, as the 50 day EMA is starting to reach towards the 200 day EMA and break above it. In fact, you could make an argument for an ascending triangle that we just broke out of, which I see as measuring for a move towards 1.28 level, where we had pulled back from previously. Breaking below the 50 day EMA would reestablish the downtrend, but based upon the recent price action, which seems to be the least likely of scenarios. To the downside, if we were to break down below the uptrend line, then it is likely that we could go looking towards 1.25 handle, and then perhaps even go reaching towards the 50 day EMA. The market between the US dollar in the Canadian dollar does tend to be very choppy, so do not be surprised if it takes a while to get to where we are going.
Breaking above that level then opens up the possibility of a move to the 1.30 handle. If we break above the highs of the trading session on Tuesday, then it is likely that the market will go looking towards 1.28 level, which is where we had pulled back from previously. The US dollar has strength across-the-board right now, and if that continues to be the case then it will show up over here. Heavy swings in the dollar make highly profitable trades
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