USD/CAD Technical Outlook
- USD/CAD reversal was extraordinarily exhausting in-line with the chance commerce
- Downward bias favored transferring into subsequent week
USD/CAD Technical Outlook: Massive Reversal Units Up the Draw back
USD/CAD spiked exhausting and reversed yesterday following the hotter-than-expected CPI print. This sort of worth motion places the draw back in play transferring ahead. Not solely did we get a serious day by day reversal, however we are also about to put up an enormous weekly (barring an enormous rally as we speak). So long as yesterday’s excessive (quickly to develop into this week’s excessive) at 13977 isn’t exceeded it’s doubtless the buying and selling bias will stay bearish.
It’s doable that we see a bit extra bouncing round earlier than heading decrease, which might fill out a wedge sample that has an overthrow concerned in its improvement. When these type the breakout is usually in-line with the overthrow.
That’s nonetheless a state of affairs having but had the time to play out, and really won’t. Both approach, whether or not USD/CAD heads decrease from right here or fills out the sample the outlook is bearish. Only one is extra instant than the opposite.
On the draw back, the following massive degree of assist doesn’t arrive till final week’s low at 13503. Given the magnitude by which USD/CAD and shares, which have an especially robust inverse correlation, fell it appears to be like fairly affordable that we are going to see that low, if not worse.
USD/CAD Day by day Chart
USD/CAD 4-hr Chart
USD/CAD Chart by TradingView
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—Written by Paul Robinson, Market Analyst
You’ll be able to comply with Paul on Twitter at @PaulRobinsonFX
DailyFX gives foreign exchange information and technical evaluation on the tendencies that affect the worldwide forex markets.