Interesting PA seen on the USD/CAD this morning, traders!
Weekly Gain/Loss: +0.24%
Weekly Close: 1.2938
Weekly perspective:
Having seen the market respond to the trend line resistance-turned support (extended from the high 1.4689) back in late August, and also act as firm resistance from its peak on a number of occasions in the past, it should not come as much of a surprise to see the line hold firm last week. The next upside target to be aware of, assuming further upside is seen, falls in around a Quasimodo resistance level parked at 1.3174.
Daily perspective:
Resistance at 1.2887 was engulfed on Thursday and retested as support on Friday in reasonably strong fashion, potentially setting the stage for further upside towards channel resistance (taken from the high 1.3386). The other key thing to note here is the converging resistance level priced in at 1.2987.
H4 perspective:
Side-by-side Canadian and US employment reports produced a violent M30 indecision candle on Friday, though managed to remain bid above its 1.29 handle. The session wrapped up with H4 price testing a nearby resistance area at 1.2945-1.2959 (sited just south of a 61.8% Fib resistance at 1.2967) in the shape of a bearish pin-bar formation. A break beyond these areas may call for a move towards the key figure 1.30, though do bear in mind before reaching this neighborhood, daily resistance at 1.2987 and its converging channel resistance will have to be tackled beforehand.
Areas of consideration:
While we do have a H4 bearish pin-bar pattern emerging out of a H4 resistance area at the moment, which could drag price action towards its 1.29 handle, selling this is tricky given both weekly and daily action portend a move north.
With the above in mind, the red zone on the H4 timeframe at 1.3021/1.30 (comprised of August’s opening level and a round number) is of interest this week. Positioned close by the noted daily resistances, a short from here is a possibility.
Nevertheless, it is recommended to wait and see if H4 price prints a bearish candlestick formation out of the aforementioned sell zone before pulling the trigger, since entering short here effectively places one against weekly flow which, as highlighted above, currently shows room to climb as far north as 1.3174.
Today’s data points: Limited data; US banks closed in observance of Columbus Day; Canadian banks closed in observance of Thanksgiving Day.
Weekly Close: 1.2938
Weekly perspective:
Having seen the market respond to the trend line resistance-turned support (extended from the high 1.4689) back in late August, and also act as firm resistance from its peak on a number of occasions in the past, it should not come as much of a surprise to see the line hold firm last week. The next upside target to be aware of, assuming further upside is seen, falls in around a Quasimodo resistance level parked at 1.3174.
Daily perspective:
Resistance at 1.2887 was engulfed on Thursday and retested as support on Friday in reasonably strong fashion, potentially setting the stage for further upside towards channel resistance (taken from the high 1.3386). The other key thing to note here is the converging resistance level priced in at 1.2987.
H4 perspective:
Side-by-side Canadian and US employment reports produced a violent M30 indecision candle on Friday, though managed to remain bid above its 1.29 handle. The session wrapped up with H4 price testing a nearby resistance area at 1.2945-1.2959 (sited just south of a 61.8% Fib resistance at 1.2967) in the shape of a bearish pin-bar formation. A break beyond these areas may call for a move towards the key figure 1.30, though do bear in mind before reaching this neighborhood, daily resistance at 1.2987 and its converging channel resistance will have to be tackled beforehand.
Areas of consideration:
While we do have a H4 bearish pin-bar pattern emerging out of a H4 resistance area at the moment, which could drag price action towards its 1.29 handle, selling this is tricky given both weekly and daily action portend a move north.
With the above in mind, the red zone on the H4 timeframe at 1.3021/1.30 (comprised of August’s opening level and a round number) is of interest this week. Positioned close by the noted daily resistances, a short from here is a possibility.
Nevertheless, it is recommended to wait and see if H4 price prints a bearish candlestick formation out of the aforementioned sell zone before pulling the trigger, since entering short here effectively places one against weekly flow which, as highlighted above, currently shows room to climb as far north as 1.3174.
Today’s data points: Limited data; US banks closed in observance of Columbus Day; Canadian banks closed in observance of Thanksgiving Day.
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