Hot Currency Trade of the Day - 11/5/08

Entry: Long USD/CAD on an hourly candle close above 1.1600
Target: Former resistance/support at 1.1890 (11/04 highs, 10/30 lows)
Stop: Below 1.1458

Looking at the daily charts, USD/CAD has managed to hold above key support at 1.1500, where we have the 38.2% Fibonacci retracement level of the rally extending from 0.9056 - 1.3015. Technical indicators such as MACD and RSI on the 240 minute and 60 minute charts show signs of stabilization, but in order to be more confident that USD/CAD will indeed bounce higher, I'm looking for a close above 1.1600 on the hourly candles.

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