On the Daily Chart, we have Higher Highs into Higher Lows forming what looks to be a Rising Wedge!
Now on the 4Hr Chart I have an underlying Support Zone that I suspect price to test and bounce up from to test the Bearish Break of the Rising Wedge and if it holds, could continue lower!!!
Strengthening my Bearish Bias is the Daily RSI High's are flat where Price on the chart has been making Higher Highs showing a Divergence in the mix!! Along with the RSI heading back down below 50!
Fundamentally this week we had CAD HOLD their Rates @ 5% giving CAD considerable strength! USD has had a rough week, showing SLOWING services and employment growth. USD - Average Hourly Earnings, Non-Farm Employment Change & Unemployment (Fri) CAD - Employment Change & Unemployment Rate (Fri)
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Support Zone @ 1.345 - 1.341!
Expecting price to possibly bounce from here!
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This mornings news results show that USD beat out CAD on Employment Change *USD - 77K Increase / CAD - 19.6K Increase
Transitioning over to the Technical side of effects from the Fundamentals we are seeing Bulls use this Support Zone called out to brings price Higher!! -On Track with our previous analysis!
*WAITING FOR THE RETEST OF THE BREAK OF PATTERN!
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We will want to watch for Revisions to the NFP results for USD seeing as how last month was revised quite a bit!
Along with Unemployment Rate rising and Hourly Earnings showing slowing, this could hurt the Consumers ultimately weakening the Dollar! -FED could think about LOWERING Int. Rates to combat issues hindering the consumers! Overall seriously impacting the Dollar!
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Price is testing the Break of Pattern now!
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To begin the week we see price pushing down from the Resistance Zone!
With the added rise of Oil prices, strengthening CAD, AND the DXY having retraced to a valuable area to possibly continue lower, we could see USD/CAD GO LOW AS WELL!!
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Price is retreating nicely after having tested the Rising Support of the Pattern & the Overhead Resistance Zone right at the same area!
i like your analysis and your idea is working very well. thanks, I am following !
Novi_Fibonacci
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@relievedToucan80050 Thank you for your comment and following! I'll be sure to keep this idea updated!
GMMTrading_
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just want to clarify your analysis, so you're saying it would still go up to test the break @ around 1.35 before it will continue to go down. is this right?
Novi_Fibonacci
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@GMMTrading_, Correct!! I'm watching for Price to retrace to the 1.35 - 1.352 area and waiting to see if the Break Holds, If it does, I'm suspecting Price to continue lower!