USDCAD Forex Technical Analysis for June 22, 2016
Forex Technical Analysis – The USD/CAD pair initially fell during the course of the session on Tuesday, and then turn right back around to form a bit of a hammer. That being the case it looks as if the market could bounce from here in order to fill the gap from the beginning of the week, but ultimately this is a market that looks very quiet as the oil markets have been relatively tame as well. Given enough time, we will have a significant move, but at this juncture I only see the possibility of a short-term move higher, which quite frankly probably isn’t going to be worth risking any money on.
In Other View point – USD/CAD looking to regain 1.2800
The Canadian dollar is now giving away part of the initial gains vs. its American neighbor, taking USD/CAD to the vicinity of 1.2800 the figure.
USD/CAD supported around 1.2780
Spot is meandering the area of weekly lows around the 1.2800 handle against the backdrop of a persistent offered bias in the greenback.
The recent recovery of crude oil prices has prompted the barrel of West Texas Intermediate to retake the psychological $50.00 mark, lending extra legs to CAD and sustaining the down move.
Ahead in the session, Canadian Retail Sales will precede US Existing Home Sales and the EIA’s weekly report on crude oil inventories. In addition, Chair J.Yellen is due to give her second testimony to Congress.
USD/CAD significant levels
As of writing the pair is losing 0.16% at 1.2796 facing the next support at 1.2651 (low Jun.8) followed by 1.2590 (low Apr.20) and then 1.2458 (2016 low May 3). On the other hand, a surpass of 1.3086 (high Jun.16) would aim for 1.3145 (high May 30) and finally 1.3191 (high May 24).
In Other View Point – USDCAD potential moves for the next a few days
To me the 1.125368 is a good level for a short term bounce as it has a good structure, trend line confirmation and harmonic moves that could confluence. A more aggressive move could head down to 1.25401 which is also a strong support.