USD/CAD technical outlook and review...
Despite crude oil falling sharply Tuesday, down nearly 5.00%, H4 movement on the USD/CAD remained relatively sedated around its 1.31 handle. In recent hours, however, the unit is seen exploring ground beneath 1.31, eyeing a possible test of September’s opening level priced in at 1.3070. A violation of this hurdle has the key figure 1.30 to target. Between 1.3070/1.30, the team notes limited demand – the two H4 tails marked with black arrows at 1.3027 and 1.3018 indicate possible demand consumption.
The story on the weekly timeframe still shows room for the market to advance as far north as the Quasimodo resistance at 1.3174. Daily flow, on the other hand, appears to be levelling off in the shape of three back-to-back candlestick wicks around trend line resistance (etched from the high 1.3386). Downside from here is capped by nearby support plotted at 1.3064 (essentially underpins September’s opening level at 1.3070 on the H4 timeframe).
Areas of consideration:
A test of 1.3070/1.3064 is likely of interest to buyers today, though caution is advised given possible selling present from 1.31/daily trend line resistance.
Should the market observe a H4 close beneath 1.3070/1.3064, a retest play (preferably by way of a H4 bearish candlestick configuration – stop/entry parameters as per the selected candlestick’s rules of engagement) to the underside of this barrier, targeting 1.30, is an is an option (red arrows).
Above 1.31, however, the focus remains on the H4 supply zone at 1.3174-1.3148 and its neighbouring H4 Quasimodo resistance at 1.3190 for possible shorting opportunities. Not only do we have a weekly Quasimodo resistance mentioned above at 1.3174 intersecting with the top edge of the H4 supply, there’s also a daily trend line resistance in view as well (see above). Irrespective of whether one selects the H4 supply to sell or the H4 Quasimodo, stop-loss order placement above the apex of the H4 Quasimodo (1.3198) is a feasible option. In terms of take-profit targets, the 1.31 handle is (without seeing the approach) the logical first step.
Today’s data points: FOMC members Bostic and Mester speak; BoC rate decision and press conference; Crude oil inventories.
The story on the weekly timeframe still shows room for the market to advance as far north as the Quasimodo resistance at 1.3174. Daily flow, on the other hand, appears to be levelling off in the shape of three back-to-back candlestick wicks around trend line resistance (etched from the high 1.3386). Downside from here is capped by nearby support plotted at 1.3064 (essentially underpins September’s opening level at 1.3070 on the H4 timeframe).
Areas of consideration:
A test of 1.3070/1.3064 is likely of interest to buyers today, though caution is advised given possible selling present from 1.31/daily trend line resistance.
Should the market observe a H4 close beneath 1.3070/1.3064, a retest play (preferably by way of a H4 bearish candlestick configuration – stop/entry parameters as per the selected candlestick’s rules of engagement) to the underside of this barrier, targeting 1.30, is an is an option (red arrows).
Above 1.31, however, the focus remains on the H4 supply zone at 1.3174-1.3148 and its neighbouring H4 Quasimodo resistance at 1.3190 for possible shorting opportunities. Not only do we have a weekly Quasimodo resistance mentioned above at 1.3174 intersecting with the top edge of the H4 supply, there’s also a daily trend line resistance in view as well (see above). Irrespective of whether one selects the H4 supply to sell or the H4 Quasimodo, stop-loss order placement above the apex of the H4 Quasimodo (1.3198) is a feasible option. In terms of take-profit targets, the 1.31 handle is (without seeing the approach) the logical first step.
Today’s data points: FOMC members Bostic and Mester speak; BoC rate decision and press conference; Crude oil inventories.
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