Weekly gain/loss: - 250 pips
Weekly closing price: 1.3212
During the course of last week’s trading the USD/CAD plummeted lower, marginally closing beyond weekly demand at 1.3223-1.3395. While this recent break could imply that a move down to weekly demand at 1.3006-1.3115 (converges with a weekly trendline support taken from high 1.1278) may take place, there’s also a chance that this could simply be fakeout.
Down on the daily chart, things have recently been a tad cramped as price has been sandwiched between support at 1.3212 and resistance at 1.3272, which happens to meet with a trendline resistance extended from the low 1.2968. As can be seen from the chart, the pair ended the week closing around the said support, so there is a chance that we may see bids come into this market today.
A closer look at price action on the H4 chart shows that the support at 1.3263 did eventually give way, with the pair ending the day closing just ahead of the 1.32 handle. With daily support positioned just above this psychological band, weekly bears may struggle to continue pushing lower this week. With that, we will not be committing to any shorts at current price.
Our suggestions: In regards to longs, 1.32 could be an option today. A break below the daily support level at 1.3212 would likely trigger stops positioned beneath this barrier, thus providing liquidity to buy into. Furthermore, let’s also bear in mind that beneath the weekly demand, stops have also likely been triggered thus providing additional liquidity.
Ultimately, what we’re looking for is a full-bodied (or very near) H4 bull candle to form from 1.32. This would be a solid cue to enter long and target the H4 resistance pegged at 1.3263 as an initial take-profit zone.
Data points to consider: FOMC Member Dudley speaks at 1pm GMT+1.
Levels to watch/live orders:
• Buys: 1.32 region (waiting for a reasonably sized H4 bull candle – preferably a full-bodied candle – to form before pulling the trigger is advised, stop loss: ideally beyond the candle’s tail).
• Sells: Flat (Stop loss: N/A).
Weekly closing price: 1.3212
During the course of last week’s trading the USD/CAD plummeted lower, marginally closing beyond weekly demand at 1.3223-1.3395. While this recent break could imply that a move down to weekly demand at 1.3006-1.3115 (converges with a weekly trendline support taken from high 1.1278) may take place, there’s also a chance that this could simply be fakeout.
Down on the daily chart, things have recently been a tad cramped as price has been sandwiched between support at 1.3212 and resistance at 1.3272, which happens to meet with a trendline resistance extended from the low 1.2968. As can be seen from the chart, the pair ended the week closing around the said support, so there is a chance that we may see bids come into this market today.
A closer look at price action on the H4 chart shows that the support at 1.3263 did eventually give way, with the pair ending the day closing just ahead of the 1.32 handle. With daily support positioned just above this psychological band, weekly bears may struggle to continue pushing lower this week. With that, we will not be committing to any shorts at current price.
Our suggestions: In regards to longs, 1.32 could be an option today. A break below the daily support level at 1.3212 would likely trigger stops positioned beneath this barrier, thus providing liquidity to buy into. Furthermore, let’s also bear in mind that beneath the weekly demand, stops have also likely been triggered thus providing additional liquidity.
Ultimately, what we’re looking for is a full-bodied (or very near) H4 bull candle to form from 1.32. This would be a solid cue to enter long and target the H4 resistance pegged at 1.3263 as an initial take-profit zone.
Data points to consider: FOMC Member Dudley speaks at 1pm GMT+1.
Levels to watch/live orders:
• Buys: 1.32 region (waiting for a reasonably sized H4 bull candle – preferably a full-bodied candle – to form before pulling the trigger is advised, stop loss: ideally beyond the candle’s tail).
• Sells: Flat (Stop loss: N/A).
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