Our take on the USD/CAD this morning...
As can be seen from the H4 timeframe this morning, the candles are currently encapsulated within an ascending H4 channel (1.2666/1.2741). Should price continue to climb within this formation, the 1.28 handle is likely the next resistance on the hit list.
Over on the weekly timeframe, the 1.2778 band represents a sturdy weekly resistance level. As a matter of fact, this level was likely the reason price sold off from Wednesday’s peak at 1.2789. While the weekly level boasts a reasonably strong history, the sellers will have to overcome a nearby daily trendline support etched from the low 1.2061. Once this line is consumed, daily structure shows little stopping price from trading as far south as support coming in at 1.2598.
Suggestions: An ideal scenario here would be for H4 price to connect with 1.28 and print a H4 close below the ascending channel formation and daily trendline support. In our book, this is enough to warrant a short, targeting the 1.27 handle, and eventually the 1.26 handle, seeing as it aligns beautifully with the aforementioned daily support.
Data points to consider: US housing figures and CAD inflation data at 1.30pm GMT.
Over on the weekly timeframe, the 1.2778 band represents a sturdy weekly resistance level. As a matter of fact, this level was likely the reason price sold off from Wednesday’s peak at 1.2789. While the weekly level boasts a reasonably strong history, the sellers will have to overcome a nearby daily trendline support etched from the low 1.2061. Once this line is consumed, daily structure shows little stopping price from trading as far south as support coming in at 1.2598.
Suggestions: An ideal scenario here would be for H4 price to connect with 1.28 and print a H4 close below the ascending channel formation and daily trendline support. In our book, this is enough to warrant a short, targeting the 1.27 handle, and eventually the 1.26 handle, seeing as it aligns beautifully with the aforementioned daily support.
Data points to consider: US housing figures and CAD inflation data at 1.30pm GMT.
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