Flat – anyone seeing different?
The USD/CAD came under pressure going into yesterday’s US session on US Senate tax plan disappointment. Outmuscling bids around the 1.27 handle, the pair managed to clock a low of 1.2667 going into the day’s end.
According to the H4 structure, the recent move has quite possibly opened up the path south down to the 1.26 handle. The large H4 tail marked with a black arrow at 1.2631 has likely cleared a truckload of bids with this move. Downside is further influenced by the fact that weekly price is seen trading beneath resistance at 1.2778. While further selling does seem favored at the moment, knowing that a sell below 1.27 would almost immediately land one within striking distance of a daily trendline support etched from the low 1.2061 unfortunately makes this a somewhat risky sell, in our book.
Suggestions: On account of the above structure, the team has come to the conclusion that it’d be best to remain flat for the time being.
Data points to consider: US prelim UoM consumer sentiment at 3pm GMT; US banks closed in observance of Veteran’s Day.
According to the H4 structure, the recent move has quite possibly opened up the path south down to the 1.26 handle. The large H4 tail marked with a black arrow at 1.2631 has likely cleared a truckload of bids with this move. Downside is further influenced by the fact that weekly price is seen trading beneath resistance at 1.2778. While further selling does seem favored at the moment, knowing that a sell below 1.27 would almost immediately land one within striking distance of a daily trendline support etched from the low 1.2061 unfortunately makes this a somewhat risky sell, in our book.
Suggestions: On account of the above structure, the team has come to the conclusion that it’d be best to remain flat for the time being.
Data points to consider: US prelim UoM consumer sentiment at 3pm GMT; US banks closed in observance of Veteran’s Day.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.