USD/CAD: Will the Loonie see a reversal soon??

FX:USDCAD   U.S. Dollar / Canadian Dollar
Weekly Timeframe: Further buying strength is being seen on the USD/CAD pair, as we watch the bulls claw their way higher into a weekly supply area seen at 1.17225-1.15417 (located within a larger weekly supply area seen at 1.18061-1.14739). It will be interesting to see what the lower timeframes show.

Daily Timeframe: The daily timeframe shows that yesterday was clearly one for the buyers, as they used the channel resistance (now support) to spring board themselves up towards a daily supply area coming in at 1.17225-1.16182 (located deep within the weekly supply area mentioned above at 1.17225-1.15417).

4hr Timeframe: The recent buying seen on this pair is impressive to say the least and we would love nothing more than to jump on board. However, as most are already aware, both the weekly and daily timeframes are showing heavy supply at the moment (see above), and this is not something we would like to risk our money on buying into.

In the event that price continues to rally higher, we would be interested in selling around 1.16960, just below 117. Setting a pending sell order here would be too risky for us; we’d require some sort of confirmation from the lower timeframes before since round-number levels usually suffer deep tests/spikes. First take-profit target for this trade would be set just above 1.16, saying that though, we would also be watching price like a hawk for any sign of selling weakness around the channel support (prior resistance), as shown by the red arrows.

Current buy/sell levels:

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

• Sell orders: 1.16960 (Predicative stop-loss orders seen at: Dependent on where one confirms the level).

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