I believe that the rise of the WTI will support the strenghtening of the Loonie until the parità. The correction has started after 5 bullish waves.
It looks like USD/CAD is having a tough time heading any lower! Resistance turned support around the 1.0375 area is still holding like a boss while stochastic looks ready to head right back up. If USD/CAD bounces, it could head back to its recent highs around 1.0600 while a breakdown could take it back to 1.0200.
Monthly bearish engulfing pattern for UsdCad, if the month closes below 1.0360.
USD/CAD is only a couple of pips away from the 1.0300 handle, which is near the rising trend line on the daily chart. Stochastic is also on the oversold area, but it hasn’t crossed just yet. You can also wait for a retest and check the candlestick patterns if you’re not too sure about the Loonie’s possible weakness.
5 monthly waves completed on UsdCad, but the end of July could be an outside bar that heralds a return to the parity, or the correction that I am waiting to return long.
The rising trend line on USD/CAD’s daily time frame is still holding, and it appears we’re getting more confirmation for a bounce. Not only is stochastic in the oversold region, but it has also made a bullish divergence! Better make sure it crosses up first before jumping in though.
Is the Loonie in for more hurt? USD/CAD is consolidating on what looks like a bullish pennant on the 4-hour chart. If the pair breaks above the pennant that I’m watching, then I might look at a possible long order entry above the previous highs near 1.0400.
Take a look at that! USD/CAD’s daily rising trend line is still holding like a boss, as the pair made a couple of tests recently. It is currently finding support at the 1.0300 major psychological handle but stochastic is pointing down, suggesting that the pair could dip a little lower again. Do you think the trend line will still hold?
I’m taking a leaf out of Big Pippin’s book this week as I look at the yummy resistance on USD/CAD’s 1.0430 area. As our resident chart guy pointed out earlier today, the Loonie bears are likely to encounter resistance at a noticeable area of interest. A tight stop could work if you believe that the pair is headed lower, but it also doesn’t hurt to wait for a couple of bearish candlesticks before you jump in!
Here’s one for the comdoll bears! USD/CAD recently encountered support at the 1.0500, which has served as an area of interest for the Loonie bulls and bears. If you’re thinking of buying this pair, then you’ll like that Stochastic is on the oversold region.
Which way could USD/CAD go? The pair has been consolidating inside an ascending triangle for the past few days, as dollar traders seem to be gathering more energy for a breakout. An upside breakout could take the pair past the 1.0600 major psychological resistance while a downside break could push it below 1.0400. What’s your take on this one?
for the new guy… what do you think of this morning’s bounce?
Ooh, interesting! This tight consolidation suggests a sharp breakout in either direction, and I’m a little biased to the downside given the upward pressure on oil prices. The pair is making higher lows though, which means that buyers keep trying to push USD/CAD up. Let’s see how it goes!
USD/CAD may be selling off pretty aggressively, but it appears that the Loonie might see an end to its happy days. The pair has formed a bullish divergence, as price made higher lows while stochastic drew lower lows, on the 4-hour time frame and hints of a potential bounce from the trend line.
That 1.0300 handle is still holdin’ like a boss! USD/CAD has been having trouble making any headway below that region, as it also coincides with a rising trend line on the daily time frame. Aside from that, a bullish divergence has formed and is hinting that a bounce might take place.
Strong support for USDCAD at 1.0250. 200-days moving average at 1.0210 and oversold oscillators, it’s time to go long.
USD/CAD is currently stalling below the 1.0300 major psychological level, which lines up with the 38.2% Fiboncacci retracement level on the recent swing high and low on the 1-hour chart. Could another test of the 1.0200 handle be in the cards? Stochastic seems to suggest so since it already turned from the overbought region.
If there’s one thing I know for sure about USD/CAD, it’s that this pair loves to range! On its 1-hour time frame, USD/CAD has bounced around the 1.0300 zone and found support near 1.0275. But with the dollar selling like lemonade on a hot summer’s day, there’s a good chance the bottom of the range might break.
