Further selling expected on the Loonie.

FX:USDCAD   U.S. Dollar / Canadian Dollar
107 0
Weekly Timeframe: At the time of writing, selling is once again being seen around the long-term weekly supply area coming in at 1.18061-1.14739. Let’s see what the lower timeframes have to say about this.

Daily Timeframe: The daily timeframe shows that the selling pressure around the 1.14655 high was clearly too strong for the buyers to overcome, and as a result saw a full-bodied bearish candle printed yesterday. We see very little that could stop prices from declining here down to at least a 4hr demand area coming in at 1.11896-1.12416 (part of a stacked demand formation – the lower demand is seen at 1.11211-1.11813).

4hr Timeframe: The 4hr timeframe shows that the market opened at 1.14267, and then saw immediate buying that forced prices to spike above a 4hr supply area coming in at 1.14474-1.14290. In our opinion this wick stopped out a ton of sellers attempting to fade the area and also trapped breakout buyers in the process, giving well-funded traders plenty of buy orders to sell into, and sell they did, price dropped like a rock! Anyone who bought here may not have been aware of the humongous weekly supply (levels above) that loomed over the current 4hr supply area like a big-black cloud.

Throughout this selling onslaught, the 1.14 level, and a very important 4hr decision-point demand area at 1.13243-1.13413 was consumed. This move likely confirms that the path south is clear down to at least 1.13. However, we are not expecting this level to put up much of a fight, and as such a push lower will likely attract further selling down to 1.12382, an area which has seen much interest from buyers in the past (located just above the daily demand area mentioned at 1.11896-1.12416). Assuming that the above does indeed come to light, we will be looking to trade this the following way:

1. We’ll be watching for any retest opportunities to short just below the 1.13 level at 1.12973, and will be targeting 1.12418.

2. We’ll also be looking to trade any bounce that may form off of 1.12382 around the 1.12418 mark. For anyone considering buying here as well, we would advise waiting for lower-timeframe confirmation seeing as that we would effectively be buying against higher-timeframe sellers (weekly supply) at that point.

Buy/sell levels:

• Buy orders: 1.12418 (Predicative stop-loss orders seen at: 1.12240).

• Sell orders: 1.12973 (Predicative stop-loss orders seen at: Dependent on where one confirms the level).
Get real-time trading updates at our official Telegram group : https://t.me/ICMarketsroom
Home Stock Screener Forex Screener Crypto Screener Economic Calendar Shows How It Works Chart Features Pricing Refer a friend House Rules Help Center Website & Broker Solutions Widgets Charting Solutions Lightweight Charting Library Blog & News Twitter
Profile Profile Settings Account and Billing Refer a friend My Support Tickets Help Center Ideas Published Followers Following Private Messages Chat Sign Out