USDCAD Forex Technical Analysis for June 17, 2016
Technical Analysis – There was a massive amount of bullish pressure in this pair during the day on Thursday, but turn right back around to get back almost all of those gains as we reached above the 1.30 level substantially. That being the case, you have to think that a break down below the bottom of the range for the day on Thursday would be extraordinarily bearish and should send this market much lower. However, with all of the volatility it’s hard to tell what’s going to happen next. And as a result it seems likely that short-term traders will probably be attracted to all of this volatility.
In Other View Point – USD/CAD headed back to 1.2900 as oil recovers
As oil recovery gained momentum, the USD/CAD pair failed to build on to its early rebound from 1.2900 level and reversed from 1.2945 region to currently trade around 1.2920 level.
On Thursday, the pair witnessed a volatile session, trimming majority of its sharp up-move to 1.3100 neighborhood to finally settle below 1.3000 psychological mark. Earlier on Thursday, the US Dollar continued strengthening as surprisingly strong Philly Fed Manufacturing index negated weak inflation and higher-than-expected weekly jobless claims data.
On Friday, broad US Dollar weakness accompanied by rebounding oil prices is seen extending support to the Canadian Dollar, dragging the USD/CAD pair lower.
Moving forward, investors now shift their focus to the Canadian May CPI number, which is expected to have risen 0.3% on monthly basis while the annual rate is expected to decline to 1.6% from 1.7%. Traders will also have the opportunity to evaluate the recovery trend in the US housing market from today’s releases of building permits and housing starts data.
Technical levels to watch
Weakness below 1.2900 round figure mark is likely to get extended towards 1.2850-45 horizontal support, which if broken is likely to expose 1.2800 handle ahead of 1.2765-60 support area. On the flip side, recovery momentum above 1.2960-70 is likely to assist the pair to surpass 1.3000 psychological mark and head towards 1.3030 resistance area. Any further up-move beyond 1.3030 resistance might continue to confront strong resistance around 1.3100 region.
In Other View (Technical Analysis) – USDCAD possible 2618 on the Daily
As we can see we have already had a 2618 trade set up occur, I missed this so will not enter until we reach the 618 retracement of teh double bottom set up ‘IF’ we come back up to the 618 area of the 1st setup first, then I will look for opportunites to get short