Slobodan Drvenica
Windsor Brokers
USD/CAD
The loonie rallied against its US counterpart on disappointing US NFP (Dec 145K vs 164K f/c) and AHE (Dec m/m0.1% vs 0.3% f/c), also being boosted by upbeat Canada's jobs data (Employment change Dec 35.2K vs 25K f/c; unemployment Dec 5.6% vs 5.8% f/c/5.9% prev).
Fresh strength of the Canadian dollar was so far unable to make more significant extension, looking more like a consolidation of pair's strong rally in past three days then reversal.
However, daily chart shows the larger downtrend from 1.3320 (3 Dec high) intact, with 1.2915/1.3104 upleg seen as corrective phase that is likely to precede fresh push lower.
Thursday's daily candle with long upper shadow marks strong upside rejection at pivotal 1.3092 barrier (Fibo 38.2% of 1.3320/1.2951/20DMA) and possible formation of bull-trap pattern, which would be verified on extension and close below falling 10DMA (1.3022).
Weak momentum and MA's in bearish setup on daily chart support the scenario, with further negative signal expected on the second straight weekly close below broken 200WMA (1.3071).
Firm break below 10DMA would weaken near-term structure and risk test of pivotal supports at 1.3010/00 (Fibo 61.8% of 1.2951/1.3104/psychological support), which guard key support at 1.2951 (31 Dec low, the lowest since mid-Oct 2018).
Res: 1.3071; 1.3092; 1.3105; 1.3136
Sup: 1.3022; 1.3000; 1.2987; 1.2951
Interested in USD/CAD technicals? Check out the key levels
The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.
Recommended Content
Editors’ Picks
EUR/USD rises toward 1.0700 after Germany and EU PMI data
EUR/USD gains traction and rises toward 1.0700 in the European session on Monday. HCOB Composite PMI data from Germany and the Eurozone came in better than expected, providing a boost to the Euro. Focus shifts US PMI readings.
GBP/USD holds above 1.2350 after UK PMIs
GBP/USD clings to modest daily gains above 1.2350 in the European session on Tuesday. The data from the UK showed that the private sector continued to grow at an accelerating pace in April, helping Pound Sterling gather strength.
Gold price flirts with $2,300 amid receding safe-haven demand, reduced Fed rate cut bets
Gold price (XAU/USD) remains under heavy selling pressure for the second straight day on Tuesday and languishes near its lowest level in over two weeks, around the $2,300 mark heading into the European session.
Here’s why Ondo price hit new ATH amid bearish market outlook Premium
Ondo price shows no signs of slowing down after setting up an all-time high (ATH) at $1.05 on March 31. This development is likely to be followed by a correction and ATH but not necessarily in that order.
US S&P Global PMIs Preview: Economic expansion set to keep momentum in April
S&P Global Manufacturing PMI and Services PMI are both expected to come in at 52 in April’s flash estimate, highlighting an ongoing expansion in the private sector’s economic activity.