Monitoring Price Action for a potential Short trade on USD/CAD this week.
Price has been in a decline for consecutive weeks now which correlates with the depreciation of DXY over the previous weeks
The Daily chart shows an MA crossover to the downside adding further bearish bias confluence
Daily Fibonacci action also is seen with price retracing to the 50% key level and respecting the resistance.
Price has now broken and retested a counter trend line on the Daily chart which could signal further downside momentum is coming this week
4 Hour chart adds further clarity to downside movement
Further vision of the retest of the broke CTL with bearish candlestick closes in the recent hours
Fibonacci also evident on the 4 Hour chart with price retracing to the 38% level before commencing consolidation range last week. However, downside movement to the 0% level did occur before a retracement to the CTL break. Retest has respected this key level and expect movement down to another level this week
Daily Key Levels to watch:
1.2135 = TP1
1.1980
Watch for early continuation of downside movement before entering to TP1 = 1.2135 - between 4 hour Fib 0% and -27%
Major Fundamental News of the week ahead:
- USD - Existing Home Sales - Mon 15:00 GMT
- USD - Core Durable Goods Orders (MoM) - Tues 13:30 GMT
- USD - New Home Sales - Tues 15:00 GMT
- USD - GDP (QoQ) - Weds 13:30 GMT
Price has been in a decline for consecutive weeks now which correlates with the depreciation of DXY over the previous weeks
The Daily chart shows an MA crossover to the downside adding further bearish bias confluence
Daily Fibonacci action also is seen with price retracing to the 50% key level and respecting the resistance.
Price has now broken and retested a counter trend line on the Daily chart which could signal further downside momentum is coming this week
4 Hour chart adds further clarity to downside movement
Further vision of the retest of the broke CTL with bearish candlestick closes in the recent hours
Fibonacci also evident on the 4 Hour chart with price retracing to the 38% level before commencing consolidation range last week. However, downside movement to the 0% level did occur before a retracement to the CTL break. Retest has respected this key level and expect movement down to another level this week
Daily Key Levels to watch:
1.2135 = TP1
1.1980
Watch for early continuation of downside movement before entering to TP1 = 1.2135 - between 4 hour Fib 0% and -27%
Major Fundamental News of the week ahead:
- USD - Existing Home Sales - Mon 15:00 GMT
- USD - Core Durable Goods Orders (MoM) - Tues 13:30 GMT
- USD - New Home Sales - Tues 15:00 GMT
- USD - GDP (QoQ) - Weds 13:30 GMT