From the FXWW Chatroom: Citi fx  –  We are going long USDCAD at 1.3143 initially targeting 1.3378 with an extended target of 1.36. This trade uses 20% of capital and the stop is at 1.2990.

–    USDCAD has seen an aggressive turn off supports around the 1.3080-1.31 area including the December low and the 200 day moving average. This looks to us like a blowout candle/hammer pattern at the lows.

–    Daily momentum is beginning to cross higher from levels which have previously corresponded with rallies in USDCAD.

–    A bounce towards the 55 day moving average (currently 1.3378) may be seen from here and an extended move could see USDCAD re-test the trend highs around 1.36.

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