USDCAD Analysis - July 30, 2019
USDCAD Analysis:
Fundamental Analysis:
1) Currently USDCAD appears bullish, USD news has been pretty fair and we have seen a spike from this week alone.
2) CAD appears bearish, but should not have an effect on the Federal Funds Rate decision pulling the US Dollar down.
Technical Analysis:
1) Price has formed a small double top on the four hour touching the 38.2% fib level on the daily with strong price rejection.
2) Coming to this minor fib level on the daily indicates a strong possible move down since buyers are having trouble pushing the price higher.
3) On the 4 hour, waiting for price to break and retest out of a prior retest zone.
4) If price moves in the same length as the previous leg then it is possible price to move down to 1.27500.
Price zones will be 1.30000, 1.29000, and 1.28000.
Disclaimer - I am a novice trader, this is not a trade signal.
Fundamental Analysis:
1) Currently USDCAD appears bullish, USD news has been pretty fair and we have seen a spike from this week alone.
2) CAD appears bearish, but should not have an effect on the Federal Funds Rate decision pulling the US Dollar down.
Technical Analysis:
1) Price has formed a small double top on the four hour touching the 38.2% fib level on the daily with strong price rejection.
2) Coming to this minor fib level on the daily indicates a strong possible move down since buyers are having trouble pushing the price higher.
3) On the 4 hour, waiting for price to break and retest out of a prior retest zone.
4) If price moves in the same length as the previous leg then it is possible price to move down to 1.27500.
Price zones will be 1.30000, 1.29000, and 1.28000.
Disclaimer - I am a novice trader, this is not a trade signal.
Comment:
Price did not reject strong enough off the 200 MA (Black Line). Position was closed with partial profits taken once price broke 1.31500 mark as I expected price to only go to the downside. This pair may also be a cup and handle formation so price may rebound to the downside but will have to meet trend and resistance first.