MorganX replies to: USD/CAD

If you are tracking the USDCAD this week, consider this technical perspective.

On the H4 time frame, bears are taking the market southward. However, from the small bearish candlestick printed in the last session of Friday, it is apparent that bears were losing their influence. So, we may see bulls give them a struggle in the early part of this week before a southward continuation materializes. Besides, we may expect the market to pull back northward for a retest of the broken previous horizontal support zone around 1.32050/1.32280, possibly for a role flip. We may have to also note the descending trendline (magenta), which may need be retested with a northward retracement by price action to confirm it as an active support before a southward continuation. Overall, the short term technical disposition on the USDCAD is bearish and we may see bears target the support around 1.29090 area.

I may be wrong. Trade safe and prosper.

KP

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The USDCAD market is largely disposed northward. An ascending trendline from the low of February 2018 on the monthly time frame is in play and acting as support. In June 2018, the market moved to a horizontal resistance around the 1.33920 area and bounced back leading to the formation of a bullish candlestick with a long upper wick and a shorter lower wick; which, technically, is an indication that bears fiercely contested a bullish dominance of the market and a southward disposition is likely.

On the weekly time frame, a bearish candlestick with a long upper wick was formed last week. This apparently was a follow-through of the bearish pinbar formed two weeks ago. The fact that last week’s candlestick engulfed the previous candlestick technically points to the likelihood of a southward continuation in the days ahead. However, we may not expect much southward move as bears will have to contend with the horizontal support around the 1.30410 area. Besides, a minor ascending trendline (black) from recent swing lows is in play and could act as support. Should bears breach these support zones southward, they are likely to target an outer ascending trendline (chocolate) or the next horizontal support around the 1.28510 area.

On the H4 time frame, bears are taking the market southward. However, from the small bearish candlestick printed in the last session of Friday, it is apparent that bears were losing their influence. So, we may see bulls give them a struggle in the early part of this week before a southward continuation materializes. Besides, we may expect the market to pull back northward for a retest of the broken previous horizontal support zone around 1.32050/1.32280, possibly for a role flip. We may have to also note the descending trendline (magenta), which may need be retested with a northward retracement by price action to confirm it as an active support before a southward continuation. Overall, the short term technical disposition on the USDCAD is bearish and we may see bears target the support around 1.29090 area.

I may be wrong. Trade safe and prosper.

KP

Do your homework, follow the footprints of big money

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