USDCAD Forex Technical Analysis for June 23, 2016
Forex Technical Analysis – The USD/CAD pair initially fell during the day on Wednesday but turned right back around to form a bit of a hammer. The 1.28 level seems to be somewhat supportive, and there is a gap at the beginning of the week that has yet to be filled. With oil markets softening a bit, we could see a little bit of a bounce in this market as well as a run to the US dollar due to concerns about the EU referendum vote coming out of the United Kingdom. Because of this, there will be a lot of volatility and typically that benefits the US dollar.
In Other View Point – USDCAD Forex Technical Analysis
The Shark I talked about is definitely finished right now. The TL at the bottom seems not to hold. On the daily chart, there are several possible patterns to note (sorry about the messy chart), the ratios are pretty nice 1. AB=CD TP 1.25380 2. Bat TP 1.25436 (pretty tight with AB=CD pattern, so there should be a strong PRZ around 1.2540) 3. Alt Bat TP 1.23662 4. Crab TP 1.20112 Currently it’s testing the hagopian line. If this line is broken on a daily basis, I would short and take profit at 1.2540 Let’s see what’s going to happen
In Other View Point – USD/CAD flirting with lows near 1.2780
The Canadian dollar remains on a firm note vs. its American peer today, sending USD/CAD to test the lower bound of the range near 1.2780.
USD/CAD attention to Yellen, oil
The pair is retreating for the second session in a row today backed by a solid performance of the risk-associated assets in detriment of the greenback, which remains depressed around multi-day lows when tracked by the US Dollar Index.
The recent recovery in crude oil prices lifted the barrel of West Texas Intermediate back above the $49.00 mark, lending extra support to CAD and collaborating with the downside.
Next of relevance will be today’s testimony of Chair J.Yellen followed by the speech of FOMC’s Powell.
USD/CAD significant levels
As of writing the pair is losing 0.11% at 1.2789 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).