USD/CAD Weekly technical outlook and review.
Weekly TF.
Upon price closing above the weekly supply area at 1.09592-1.08133, price was relatively free to hit the small weekly supply area at 1.10522-1.09996, however before this happens a decline in value may well be seen all the way back down to weekly demand at 1.05715-1.07008, since pro money may need more liquidity for a further push up.
Daily TF.
What is happening on the weekly timeframe seems to happening on the daily timeframe, only in a smaller scale. A mini tug of war was being seen around daily supply at 1.09592-1.09156 which very likely cleared the sellers out, leaving the path relatively clear up to the daily supply above at 1.10522-1.10133 (located within the weekly supply area at 1.10522-1.09996). Pro money may not have the liquidity to push prices further yet, so a decline (which seems to have already started) may be seen down to the following levels: daily S/R flip level at 1.08277, a daily minor R/S flip level at 1.07932, and finally a daily demand area at 1.05874-1.06680 which is conveniently located within weekly demand at 1.05715-1.07008.
4hr TF.
Price came within a few pips of filling our pending sell order set within 4hr demand (1.08441-1.08650) at 1.08544 on Friday. Since price came so close, and likely consumed a lot of buyers consequently weakening this area, we have decided to remove this pending buy order, since both the weekly and the daily timeframes indicate lower prices could be seen, it’s always best to take a trade when all the ducks are lined up!
However, something that does catch our eye is the green trendline, this again is not to represent a trend as such, it is more to show how pro money have likely consumed the sellers as price was dropping, thus clearing the path north. So, with this in mind we see a possible trade if a break above the high marked with a green flag is seen at 1.09179, we could then see a quick decline back to the 4hr demand area at 1.08441-1.08650 (which is where we’ll be looking for longs), for a further push up to at least 4hr supply at 1.09830-1.09652.
Pending/P.A confirmation levels:
• N0 pending buy orders (Green line) are seen in the current market environment
• No P.A confirmation buy levels (Red line) are seen in the current market environment.
• Pending sell orders (Green line) are seen just below 4hr supply (1.10388-1.10163) at 1.10133. A pending sell order has been set here simply because we expect the round number below at 1.1 to be faked above towards this area, hence a first-touch reaction is expected, since pro money will likely be selling to all those fader traders with their stops just above the round number, and this could very well push prices higher above the round number level right into the aforementioned 4hr supply area.
• No P.A confirmation sell levels (Red line) are seen in the current market environment.
• Areas to watch for buy orders: P.O: No pending buy orders are seen in the current market environment. P.A.C: No P.A confirmation buy levels seen within the current market environment.
• Areas to watch for sell orders: P.O: 1.10113 (SL: 1.10411 TP: Dependent on how price approaches) P.A.C: No P.A confirmation sell levels seen within the current market environment.
Upon price closing above the weekly supply area at 1.09592-1.08133, price was relatively free to hit the small weekly supply area at 1.10522-1.09996, however before this happens a decline in value may well be seen all the way back down to weekly demand at 1.05715-1.07008, since pro money may need more liquidity for a further push up.
Daily TF.
What is happening on the weekly timeframe seems to happening on the daily timeframe, only in a smaller scale. A mini tug of war was being seen around daily supply at 1.09592-1.09156 which very likely cleared the sellers out, leaving the path relatively clear up to the daily supply above at 1.10522-1.10133 (located within the weekly supply area at 1.10522-1.09996). Pro money may not have the liquidity to push prices further yet, so a decline (which seems to have already started) may be seen down to the following levels: daily S/R flip level at 1.08277, a daily minor R/S flip level at 1.07932, and finally a daily demand area at 1.05874-1.06680 which is conveniently located within weekly demand at 1.05715-1.07008.
4hr TF.
Price came within a few pips of filling our pending sell order set within 4hr demand (1.08441-1.08650) at 1.08544 on Friday. Since price came so close, and likely consumed a lot of buyers consequently weakening this area, we have decided to remove this pending buy order, since both the weekly and the daily timeframes indicate lower prices could be seen, it’s always best to take a trade when all the ducks are lined up!
However, something that does catch our eye is the green trendline, this again is not to represent a trend as such, it is more to show how pro money have likely consumed the sellers as price was dropping, thus clearing the path north. So, with this in mind we see a possible trade if a break above the high marked with a green flag is seen at 1.09179, we could then see a quick decline back to the 4hr demand area at 1.08441-1.08650 (which is where we’ll be looking for longs), for a further push up to at least 4hr supply at 1.09830-1.09652.
Pending/P.A confirmation levels:
• N0 pending buy orders (Green line) are seen in the current market environment
• No P.A confirmation buy levels (Red line) are seen in the current market environment.
• Pending sell orders (Green line) are seen just below 4hr supply (1.10388-1.10163) at 1.10133. A pending sell order has been set here simply because we expect the round number below at 1.1 to be faked above towards this area, hence a first-touch reaction is expected, since pro money will likely be selling to all those fader traders with their stops just above the round number, and this could very well push prices higher above the round number level right into the aforementioned 4hr supply area.
• No P.A confirmation sell levels (Red line) are seen in the current market environment.
• Areas to watch for buy orders: P.O: No pending buy orders are seen in the current market environment. P.A.C: No P.A confirmation buy levels seen within the current market environment.
• Areas to watch for sell orders: P.O: 1.10113 (SL: 1.10411 TP: Dependent on how price approaches) P.A.C: No P.A confirmation sell levels seen within the current market environment.
IC Markets is an online forex broker specialized in providing transparent trading solutions to both retail and institutional investors alike. We provide superior execution technology, lower spreads and unrivaled liquidity.