USDCAD: Key corrective break lower indicating further downside
Technical Insights
- USDCAD has now impulsively broken the daily corrective structure indicating further downside pending a clear continuation pattern confirming the structural break.
- On the lower timeframes we anticipate a pullback albeit minor given the larger correction prior.
- Price action appears similar to the May 17 bearish impulsive leg down and will be using this as a tool to monitor similarities in the move. Currently, the initial waves are almost identical in shape and timing.
Fundamental/Macro Insights
- Structurally weaker USD, recent Fed commentary surrounding GDP and rate hike revisions
- CAD reaping benefit of anticipated monetary policy easing and further rate hikes in 2019
- Rebound and forecasts for WTI/Brent Oil fuelling bullish CAD bias
Targets
- Target profit zones include the base of the larger ascending channel structure and the subsequent low of the HTF correction.
Bias
- Bearish structurally to target profit zones
- USDCAD has now impulsively broken the daily corrective structure indicating further downside pending a clear continuation pattern confirming the structural break.
- On the lower timeframes we anticipate a pullback albeit minor given the larger correction prior.
- Price action appears similar to the May 17 bearish impulsive leg down and will be using this as a tool to monitor similarities in the move. Currently, the initial waves are almost identical in shape and timing.
Fundamental/Macro Insights
- Structurally weaker USD, recent Fed commentary surrounding GDP and rate hike revisions
- CAD reaping benefit of anticipated monetary policy easing and further rate hikes in 2019
- Rebound and forecasts for WTI/Brent Oil fuelling bullish CAD bias
Targets
- Target profit zones include the base of the larger ascending channel structure and the subsequent low of the HTF correction.
Bias
- Bearish structurally to target profit zones