Restricted price action on the USD/CAD this morning...
USD/CAD:
Partly on a recoil in oil prices (down 2.39% on the day) and the US dollar index recording its sixth consecutive daily gain, the USD/CAD catapulted itself northbound Thursday and registered its fourth consecutive daily session in the green.
Reclaiming two weeks’ worth of losses and recapturing weekly resistance at 1.3223, this has potentially set the stage for further buying towards the 2017 yearly opening level on the weekly timeframe at 1.3434. While this may be the case on the weekly timeframe, market participants on the daily timeframe are seen testing ground just south of a notable Quasimodo resistance at 1.3319.
Having seen latest movement on the H4 chart pull the candles beyond 1.33 into the close, further upside towards a Quasimodo resistance at 1.3358 that aligns nicely with a trend line support-turned resistance (taken from the low 1.3183) is a possibility. Despite room being seen for an advance, the RSI indicator currently meets the characteristics of a clean overbought/divergence play.
Areas of consideration:
Medium term, this is a particularly challenging market to read.
H4 buyers appear in good form above 1.33, potentially gearing up for a continuation move north. The grumble here, of course, is not the weekly timeframe, which shows room to advance as well, it is the daily timeframe underlining a Quasimodo resistance. For that reason, buying this market is problematic until this level is removed. In saying that, though, once the daily level is consumed, buyers have to contend with possible selling from the current H4 Quasimodo resistance level that merges with a trend line support-turned resistance.
With the above in mind, a long in this market is restricted, though so is the path south. Selling, although in line with daily structure, has possible buying off 1.33 to contend with and another layer of local support seen nearby at 1.3284. For folks considering shorting the H4 Quasimodo, there’s a strong possibility support will swiftly enter the mix off the (at the point it will be) the broken daily Quasimodo resistance-turned possible support.
Today’s data points: Canadian Employment Change and Unemployment Rate.
Partly on a recoil in oil prices (down 2.39% on the day) and the US dollar index recording its sixth consecutive daily gain, the USD/CAD catapulted itself northbound Thursday and registered its fourth consecutive daily session in the green.
Reclaiming two weeks’ worth of losses and recapturing weekly resistance at 1.3223, this has potentially set the stage for further buying towards the 2017 yearly opening level on the weekly timeframe at 1.3434. While this may be the case on the weekly timeframe, market participants on the daily timeframe are seen testing ground just south of a notable Quasimodo resistance at 1.3319.
Having seen latest movement on the H4 chart pull the candles beyond 1.33 into the close, further upside towards a Quasimodo resistance at 1.3358 that aligns nicely with a trend line support-turned resistance (taken from the low 1.3183) is a possibility. Despite room being seen for an advance, the RSI indicator currently meets the characteristics of a clean overbought/divergence play.
Areas of consideration:
Medium term, this is a particularly challenging market to read.
H4 buyers appear in good form above 1.33, potentially gearing up for a continuation move north. The grumble here, of course, is not the weekly timeframe, which shows room to advance as well, it is the daily timeframe underlining a Quasimodo resistance. For that reason, buying this market is problematic until this level is removed. In saying that, though, once the daily level is consumed, buyers have to contend with possible selling from the current H4 Quasimodo resistance level that merges with a trend line support-turned resistance.
With the above in mind, a long in this market is restricted, though so is the path south. Selling, although in line with daily structure, has possible buying off 1.33 to contend with and another layer of local support seen nearby at 1.3284. For folks considering shorting the H4 Quasimodo, there’s a strong possibility support will swiftly enter the mix off the (at the point it will be) the broken daily Quasimodo resistance-turned possible support.
Today’s data points: Canadian Employment Change and Unemployment Rate.
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