ICmarkets

USD/CAD Weekly technical outlook and review.

FX:USDCAD   U.S. Dollar/Canadian Dollar
26 0 0
Weekly TF.

Prices are stalling after hitting the awesome-looking weekly supply area at 1.10522-1.09996. Considering just the weekly timeframe for the moment, we still believe lower prices could be seen, since there’s very little stopping the sellers from challenging the weekly demand area below at 1.05715-1.07008.

Daily TF.

Last week saw buyers and sellers trading in between a daily supply area at 1.09967-1.09401, and a daily S/R flip level support at 1.08277. Ideally, we’re looking for price to break below this level, since this would very likely confirm selling strength from the weekly supply area at 1.10522-1.09996.

4hr TF.

The market seems to really like the 4hr S/D flip area at 1.08324-1.08092 considering the amount of times it has been tested! However, in our opinion this area does not indicate strength, think of it like this: chopping a tree with an axe too many times, it is bound to give way and eventually fall. This is similar to what is likely happening here, each touch no doubt consumes more buyers each time indicating possible weakness.

Friday saw the market test the round number 1.09, the subsequent rebound produced a potential bearish closing price, but the only way find out if the selling was legit will be to see a follow-through down towards the aforementioned 4hr S/D flip area (which is very likely to see a break). Just below this zone is a small 4hr fakeout area at 1.07948-1.08006 (it’s a fakeout area simply because price faked out below the round number 1.08 before continuing higher), we have set a pending buy order here just above at 1.08028 since when, or indeed if prices reaches here, this area will be likely good for a bounce at the very least.

Pending orders/P.A confirmation levels:

• Areas to watch for buy orders: P.O: 1.08028 (SL: 1.07884 TP: Dependent on how price approaches). P.A.C: No P.A confirmation sell levels are seen in the current market environment.

• Areas to watch for sell orders: P.O: 1.10127 (SL: 1.10440 TP: Dependent on how price approaches) P.A.C: 1.09777 (SL: Dependent on price action after the level has been confirmed TP: Dependent on approaching price action after the level has been confirmed).



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