We are short the Loonie from 1.12979

FX:USDCAD   U.S. Dollar / Canadian Dollar
143 0
Weekly Timeframe: Three weeks ago, selling interest came into the market a few pips below a major weekly supply area coming in at 1.18061-1.14739, consequently encouraging follow-through selling. As per this timeframe, it appears the path south is potentially clear down to at least 1.09394, since we believe most of the near-term demand has already likely been consumed – check out the demand consumption tails seen at 1.11211/1.10807. Let’s see what we can find on the lower timeframes.

Daily Timeframe: For further selling to be seen from the aforementioned weekly supply area, a daily demand area at 1.11211-1.11813 will need to be consumed. Be that as it may, yesterday’s trading action saw buying interest coming into the market forcing prices up to a minor daily supply area coming in at 1.13681-1.13024. Assuming that this area holds the market lower, we can likely expect the sellers to challenge the aforementioned daily decision-point demand area, which was so very close to being hit on Friday.

4hr Timeframe: For anyone who read our previous report on the USD/CAD pair, you may recall us mentioning that we would be comfortable placing a pending sell order just below the 4hr supply area seen at 1.13238-1.13026. True to our word, as soon as price breached the 4hr demand swap area at 1.12575- 1.12674 (seen on Friday’s chart), we placed a pending sell order at 1.12979, which has recently been filled.

Ultimately, what we’re looking to see price do this week is decline in value down towards a 4hr demand area at 1.11211-1.11454 (located deep within the daily demand area mentioned above at 1.11211-1.11813). It will be here where an important decision will need to be made.

Anyone who also sold around the 1.12979 area - be on your guard for some buying opposition to be seen around 1.12513, and the round-number level 1.12 as per the blue arrows.

Buy/sell levels:

• Buy orders: N/A (Predicative stop-loss orders seen at: N/A).

• Sell orders: 1.12979 (Predicative stop-loss orders seen at: 1.13276).

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