Hello everyone, as we all know the market action discounts everything :)
_________________________________Make sure to Like and Follow if you like the idea_________________________________
On July 20 I posted my analysis on the market and told u that a cup and handle pattern has formed and the market is looking Bullish
Then on the 2nd of September, i posted an idea about how the market will probably move for the next period of time, and Today we see that the market moved exactly like I said it would .....
Today The USD/CAD pair added to its strong intraday gains and climbed to one-month tops, further beyond the 1.2800 mark heading into the European session.
The market is still showing Bullish signs all over, and if we use the Elliot wave theory we see that we are having an impulsive wave right now that could push the market to the 1.3002 level.
Scenario :
The market is getting close to the first resistance line at 1.2826 where a battle between the Bears and Bulls will happen and the outcome will probably be in favor of the Bulls. if the price breakout that line then the trend will go on and that which give us a good confirmation that the movement will be headed to the 1.3002 level soon.
Technical indicators show :
1) The market is above the 5 10 20 50 100 and 200 MA and EMA (Strong Bullish sign)
2) The RSI is at 63.07 showing Great strength in the market, No divergences were found between the market and the indicator
3) The ADX is at 18.45 showing that the market is gaining more strength but it didn't reach the trending phase yet. A positive crossover is happening between DI+ (28.32) and DI- (14.76)
Daily Support and Resistance :
support Resistance
1) 1.2759 1) 1.2777
2) 1.2751 2) 1.2787
3) 1.2741 3) 1.2795
Weekly Support and Resistance :
support Resistance
1) 1.2651 1) 1.2826
2) 1.2537 2) 1.2887
3) 1.2475 3) 1.3002
Fundamental point of view :
The USD/CAD returned to its best level in a month as markets anticipate the Federal Reserve will confirm that a bond taper is planned this year and the close Canadian election is not expected to produce any major policy shift, whatever its political result.
That promise of higher US interest rates has been the main support for the US dollar over the past month.
Canadian inflation was slightly higher in August than expected though the Bank of Canada core rate was a bit lower than forecast, though it increased over July.
In the US, the Consumer Price Index for August showed the first indication that price increases may be slackening. Retail Sales in August rebounded smartly from their decline the month before.
Polls for Canada’s federal election on Monday between Prime Minister Justin Trudeau’s Liberals and the Conservatives of Erin O’Toole show neither party winning an outright majority in the 338-seat parliament. According to FXstreet
This is my personal opinion done with technical analysis of the market price and research online from Fundamental Analysts and News for The Fundamental point of view, not financial advice.
If you have any questions please ask and have a great day !!
Thank you for reading.
_________________________________Make sure to Like and Follow if you like the idea_________________________________
On July 20 I posted my analysis on the market and told u that a cup and handle pattern has formed and the market is looking Bullish
Then on the 2nd of September, i posted an idea about how the market will probably move for the next period of time, and Today we see that the market moved exactly like I said it would .....
Today The USD/CAD pair added to its strong intraday gains and climbed to one-month tops, further beyond the 1.2800 mark heading into the European session.
The market is still showing Bullish signs all over, and if we use the Elliot wave theory we see that we are having an impulsive wave right now that could push the market to the 1.3002 level.
Scenario :
The market is getting close to the first resistance line at 1.2826 where a battle between the Bears and Bulls will happen and the outcome will probably be in favor of the Bulls. if the price breakout that line then the trend will go on and that which give us a good confirmation that the movement will be headed to the 1.3002 level soon.
Technical indicators show :
1) The market is above the 5 10 20 50 100 and 200 MA and EMA (Strong Bullish sign)
2) The RSI is at 63.07 showing Great strength in the market, No divergences were found between the market and the indicator
3) The ADX is at 18.45 showing that the market is gaining more strength but it didn't reach the trending phase yet. A positive crossover is happening between DI+ (28.32) and DI- (14.76)
Daily Support and Resistance :
support Resistance
1) 1.2759 1) 1.2777
2) 1.2751 2) 1.2787
3) 1.2741 3) 1.2795
Weekly Support and Resistance :
support Resistance
1) 1.2651 1) 1.2826
2) 1.2537 2) 1.2887
3) 1.2475 3) 1.3002
Fundamental point of view :
The USD/CAD returned to its best level in a month as markets anticipate the Federal Reserve will confirm that a bond taper is planned this year and the close Canadian election is not expected to produce any major policy shift, whatever its political result.
That promise of higher US interest rates has been the main support for the US dollar over the past month.
Canadian inflation was slightly higher in August than expected though the Bank of Canada core rate was a bit lower than forecast, though it increased over July.
In the US, the Consumer Price Index for August showed the first indication that price increases may be slackening. Retail Sales in August rebounded smartly from their decline the month before.
Polls for Canada’s federal election on Monday between Prime Minister Justin Trudeau’s Liberals and the Conservatives of Erin O’Toole show neither party winning an outright majority in the 338-seat parliament. According to FXstreet
This is my personal opinion done with technical analysis of the market price and research online from Fundamental Analysts and News for The Fundamental point of view, not financial advice.
If you have any questions please ask and have a great day !!
Thank you for reading.