USDCAD, H4
In the 4-hour chart, USD/CAD prices today got back below the 20, 50 and 200- period MA after yesterday’s lift from opening lows near 1.2615 to 1.2659 highs, by the weak Canadian manufacturing data earlier. Overnight, USDCAD had rallied further up to 1.2690, supported by U.S. politics which continues to roil markets, with the latest being rumors that Trump’s chief economic advisor Cohn may resign. Wall Street has taken a tumble on the rumors, supporting USDCAD as risk-off conditions emerge again.
Today however, the pair looking southwards, with US dollar coming under some broader pressure. The USDCAD formed earlier a Shooting Star pattern at the lower Bollinger bands area, in which is moving the last 2 Days. The Shooting Star pattern consider be a Bearish reversal signal. Meanwhile the wider picture of USDCAD is in a continuous weakness seen since April, with the loonie staging a furious rally in July amid the BoC’s rate hike and hawkish guidance. This wider weakness can be identify in the Daily Chart, in which the pair moves below a strong resistance level set by trend line since year’s high. The particular trend-line, indicates the current resistance level at 1.2780, which was set also as a Support level in today’s entry.
Hence after Shooting Star formation and on the anticipation of today’s Canadian CPI data which expected to slightly increase by 0.1%, a Short position was taken with entry at 1.2642. The First 4-hour Target was set at 20-Day MA, which is also near Yesterday’s low, at 1.2580. The second Target, is a Daily Target at 1.2540.
Nevertheless, in both timeframes, such as the 4-hour and Daily one, the parabolic SAR and MACD remain negative.
Disclaimer: Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of purchase or sale of any financial instrument.
Recommended Content
Editors’ Picks
EUR/USD edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.