USD/CAD has more room to advance ahead of Canadian GDP – Confluence Detector

Yohay Elam FXStreet

US President Donald Trump has announced fresh tariffs on Mexico, sending the Mexican peso down. Canada, the third partner in the USMCA agreement, is also on the back foot ahead of the all-important GDP release.

The Technical Confluences Indicator shows that USD/CAD faces only weak resistance at 1.3597 where the Pivot Point one-week Resistance 2 and the Fibonacci 161.8% one-week converge.

The upside target is 1.3654 where we see the convergence of the Pivot Point one-month Resistance 2 and the PP one-week R3.

Looking down, USD/CAD is backed by massive support. A dense cluster of lines awaits at 1.3507. It includes the Fibonacci 38.2% one-day, the previous weekly high, the Pivot Point one-week Resistance 1, the Fibonacci 61.8% one-day, and the Bollinger Band 15min-Lower.

Further down, another busy juncture awaits it at 1.3464 and it includes the Bollinger Band one-day-Middle, the Simple Moving Average 100-4h, the SMA 200-1h, the SMA 10-1d, and the SMA 50-4h.

The path of least resistance is clearly to the upside.

Here is how it looks on the tool:

USD CAD technical confluence May 31 2019

Confluence Detector

The Confluence Detector finds exciting opportunities using Technical Confluences. The TC is a tool to locate and point out those price levels where there is a congestion of indicators, moving averages, Fibonacci levels, Pivot Points, etc. Knowing where these congestion points are located is very useful for the trader, and can be used as a basis for different strategies.

This tool assigns a certain amount of “weight” to each indicator, and this “weight” can influence adjacents price levels. These weightings mean that one price level without any indicator or moving average but under the influence of two “strongly weighted” levels accumulate more resistance than their neighbors. In these cases, the tool signals resistance in apparently empty areas.

Learn more about Technical Confluence

Author

Yohay Elam

FXStreet

Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.

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