Forex Technical Analysis, USD/CAD Daily Forecast June 6, 2016
Technical Analysis – The USD/CAD pair fell significantly during the course of the session on Friday, as the jobs number coming out of America was horrific. We ended up only adding 38,000 jobs during the month of May, and that of course is a significant bearish turn of events, so having said that there is more than enough support just below to keep this market somewhat afloat. Pay attention to the oil markets, they have quite a bit of influence on the Canadian dollar itself. The 1.28 level below being broken to the downside would be a reason to start selling. A supportive candle in this area could be a buying opportunity for short-term traders though.
In Other View Point –USDCAD – Head and Shoulders Pattern
The pair USDCAD has formed a head and shoulders pattern on the 4h chart. 1.3000 area seem like strong resistance while 1.2700 will provide good support. The price has broken the support trend line, also acts as the neckline of the head and shoulders pattern. A short is recommended once price will retest the neckline and resistance @1.3000 with a stop loss @1.3070 and take profit @1.2750. Stay Tuned.