USD/CAD: Weekly technical outlook and review.
Weekly TF.
Last week saw price action predominantly remain trading within the weekly supply area at 1.09592-1.08133. Any sellers that were trying to fade this area have very likely been forced to cover their positions now, indicating the path is now clear up to the small weekly supply area above at 1.10522-1.09996.
Daily TF.
The daily timeframe’s price action is very similar to the weekly timeframe, only on a slightly smaller scale. The sellers around the daily supply area at 1.09592-1.09156 have well and truly been consumed, which likely indicates that price is free to rally up to the next area of interest on this timeframe (daily supply at 1.10522-1.10133).
4hr TF.
Even though the higher timeframes are suggesting higher prices could be seen soon, the 4hr timeframe is currently indicating we may see lower prices down to at least the round number 1.09 (a P.A confirmation buy level is set just above at 1.09040). The red circle represents quite an important low (1.09311) as this was the low that formed the HH into the 4hr supply area above at 1.09830-1.09652, so once price closed below this as it did (marked with an arrow – 1.09269), and then price spiked north to collect any unfilled sell orders (1.09787), we can very likely assume once the market opens this week, we will be likely seeing lower prices down to at least the round number 1.09, since most of the buyers have already been consumed.
We are definitely not disagreeing with what the higher-timeframe picture is telling us, all we are merely pointing out is that price will likely see a decline in value before higher prices are seen.
Pending/P.A confirmation levels:
• No pending buy orders (Green line) are seen in the current market environment.
• New P.A confirmation buy levels (Red line) are seen just above the round number 1.09 at 1.09040. We have not placed a pending buy order here simply because pro money could test (deep spike) this area, and also there is no logical area (that is close enough) for a stop-loss order to be set.
• Pending sell orders (Green line) are seen just below a 4hr supply area (1.10388-1.10163) at 1.10127. This area remains fresh, and likely contains unfilled sell orders indicating a bounce south at the very least will be seen if/when price reaches this area.
• The P.A confirmation sell level (Red line) set just below a 4hr supply area (1.09830-1.09652) at 1.09624 has been removed since a small wick/spike (1.09853) was seen above the 4hr supply area invalidating the level, thus not allowing us to place a pending sell order in its place.
• Areas to watch for buy orders: P.O: No pending buy orders are seen in the current market environment. P.A.C: 1.09040 (SL: Dependent on price action after the level has been confirmed TP: Dependent on approaching price action after the level has been confirmed).
• Areas to watch for sell orders: P.O: 1.10127 (SL: 1.10440 TP: Dependent on how price approaches) P.A.C: No P.A confirmation sell levels are seen in the current market environment.
Last week saw price action predominantly remain trading within the weekly supply area at 1.09592-1.08133. Any sellers that were trying to fade this area have very likely been forced to cover their positions now, indicating the path is now clear up to the small weekly supply area above at 1.10522-1.09996.
Daily TF.
The daily timeframe’s price action is very similar to the weekly timeframe, only on a slightly smaller scale. The sellers around the daily supply area at 1.09592-1.09156 have well and truly been consumed, which likely indicates that price is free to rally up to the next area of interest on this timeframe (daily supply at 1.10522-1.10133).
4hr TF.
Even though the higher timeframes are suggesting higher prices could be seen soon, the 4hr timeframe is currently indicating we may see lower prices down to at least the round number 1.09 (a P.A confirmation buy level is set just above at 1.09040). The red circle represents quite an important low (1.09311) as this was the low that formed the HH into the 4hr supply area above at 1.09830-1.09652, so once price closed below this as it did (marked with an arrow – 1.09269), and then price spiked north to collect any unfilled sell orders (1.09787), we can very likely assume once the market opens this week, we will be likely seeing lower prices down to at least the round number 1.09, since most of the buyers have already been consumed.
We are definitely not disagreeing with what the higher-timeframe picture is telling us, all we are merely pointing out is that price will likely see a decline in value before higher prices are seen.
Pending/P.A confirmation levels:
• No pending buy orders (Green line) are seen in the current market environment.
• New P.A confirmation buy levels (Red line) are seen just above the round number 1.09 at 1.09040. We have not placed a pending buy order here simply because pro money could test (deep spike) this area, and also there is no logical area (that is close enough) for a stop-loss order to be set.
• Pending sell orders (Green line) are seen just below a 4hr supply area (1.10388-1.10163) at 1.10127. This area remains fresh, and likely contains unfilled sell orders indicating a bounce south at the very least will be seen if/when price reaches this area.
• The P.A confirmation sell level (Red line) set just below a 4hr supply area (1.09830-1.09652) at 1.09624 has been removed since a small wick/spike (1.09853) was seen above the 4hr supply area invalidating the level, thus not allowing us to place a pending sell order in its place.
• Areas to watch for buy orders: P.O: No pending buy orders are seen in the current market environment. P.A.C: 1.09040 (SL: Dependent on price action after the level has been confirmed TP: Dependent on approaching price action after the level has been confirmed).
• Areas to watch for sell orders: P.O: 1.10127 (SL: 1.10440 TP: Dependent on how price approaches) P.A.C: No P.A confirmation sell levels are seen in the current market environment.
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