USDCAD - Where is it headed

Where do you think this pair is headed, definitely not south after all the news today.

Now I ask everybody where this pair will head now, seems definitely south. Pls contribute your thoughts.

The USD/CAD confirmed a very strong closing even well above the 200 days line, now support at 1,0894. Possible further strength toward the 1,10 level! The indicators of the daily chart are already above the line as well as those of the 4h one supporting further strength. The indicators of the hourly chart turned instead below the line after having formed bearish divergences on the way. We have however also a potential negative reversal situation that is limiting the upside. While above 1,0908, the 200 hours line, the pair is supported suggesting a retest of the 1,10 area. We wait for a possible correction to try again a long position!


Thanks for your elaborate analysis. But now it seems that it is headed north, especially with the US news coming out shortly.

The pair failed to confirm the previous day’s positive day reversal turning lower for a possible test of the 200 days line at 1,0914! The indicators of the daily chart are still well negative and this morning also those of the s/t ones are negative supporting further weakness. Bullish divergences confirm a negative tone. The return back below 1,10 confirmed a negative reversal suggesting a s/t target at 1,0908!!

How does a bullish divergence confirm a negative tone?

The pair confirmed a weak closing below the low of the negative day reversal suggesting that this dollar could have a s/t top. While weak compared to the previous one, yesterday’s closing was well off the low below 1,1100!! The indicators of the daily chart are however still well positive while those of the s/t charts are showing a mixed picture suggesting some consolidation/ correction. We believe the present move up above 1,1150 is corrective, having broken below the 30% level. We try therefore a short position here at 1,1174 with a stop above 1,1225!!

Where is it headed now? It seems that it will cross 1.1600! Technical analysis is not working and it seems that the price of oil is the indicator of where it is headed. Please comment.

What do you mean technical analysis is not working?