Following reports that OPEC agreed to limit oil production yesterday saw the oil market launch itself north, reaching highs of 47.41. This, as a consequence, pushed the USD/CAD pair aggressively lower! Price wiped out multiple H4 tech supports and now looks as though it’s en route to touch gloves with the key figure 1.30 this morning. From a technical standpoint, this move came about within the upper edge of a weekly supply zone drawn from 1.3295-1.3017, and from the underside of a daily supply barrier coming in at 1.3405-1.3259.
With the daily support at 1.3029 now seen within touching distance, and, of course, the 1.30 level lingering just below this, what direction do we see the pair headed today? Well, between 1.30/1.3029 we feel a bounce higher is likely to be seen. However, this bounce could be a short-lived one if weekly sellers continue to push lower. As such, we would advise waiting for at least a H4 bullish close to form around this area before buying here.
A H4 close below 1.30, nonetheless, would be interesting, since this would not only confirm bearish strength from the aforementioned weekly supply zone, but also open the path south for the H4 candles to cross swords with demand seen at 1.2910-1.2925. With that said, to trade this move, we’d need to see price retest the underside of 1.30 as resistance, followed up by a reasonably sized H4 bearish candle. With stops placed above the head of this trigger candle, we would, dependent on the time of day, look to sell.
With the daily support at 1.3029 now seen within touching distance, and, of course, the 1.30 level lingering just below this, what direction do we see the pair headed today? Well, between 1.30/1.3029 we feel a bounce higher is likely to be seen. However, this bounce could be a short-lived one if weekly sellers continue to push lower. As such, we would advise waiting for at least a H4 bullish close to form around this area before buying here.
A H4 close below 1.30, nonetheless, would be interesting, since this would not only confirm bearish strength from the aforementioned weekly supply zone, but also open the path south for the H4 candles to cross swords with demand seen at 1.2910-1.2925. With that said, to trade this move, we’d need to see price retest the underside of 1.30 as resistance, followed up by a reasonably sized H4 bearish candle. With stops placed above the head of this trigger candle, we would, dependent on the time of day, look to sell.
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