This afternoon, US and Canadian markets face important data that could move the needles in a bearish direction for the greenback. Unemployment, non-farm payrolls and US government wages figures are particularly prominent, against expectations of improving Canadian employability in the face of a bearish outlook in the US. This could drive a strong revaluation of the Loonie versus the Greenback.
This time around, the bearish range shifts that have been occurring since October 2022 are very likely to move the currency in terms of shorter timeframes in the direction of a return to the long-term channel mean.
The current high zone is 1.36177 CAD/USD, but we could see attempts to fracture towards the lower zone if the data hits as expected. The price bell signals a solid trading zone at 1.34837, so we could expect price to look to test 1.34523 again, and if it doesn't hold, continue to decline. The RSI indicator is at an average zone of 52.84% versus its 200 candlestick average of 53.60%, suggesting possible sideways entries with a mainly bearish or sideways direction given the low intensity of trading volumes. Fibonacci extensions show a value of 0.786 in the area of the current highs at 1.36135 and retracements at 1.34598, indicating that prices could remain stable until trading volumes change. Despite today's impactful news the price does not look like it will make overly sharp changes on the last day of the week.
And that's it! That's it! That's it folks!
Ion Jauregui - AT Analyst
*******************************************************************************************
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and such should be considered a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acing on the information provided does so at their own risk.
This time around, the bearish range shifts that have been occurring since October 2022 are very likely to move the currency in terms of shorter timeframes in the direction of a return to the long-term channel mean.
The current high zone is 1.36177 CAD/USD, but we could see attempts to fracture towards the lower zone if the data hits as expected. The price bell signals a solid trading zone at 1.34837, so we could expect price to look to test 1.34523 again, and if it doesn't hold, continue to decline. The RSI indicator is at an average zone of 52.84% versus its 200 candlestick average of 53.60%, suggesting possible sideways entries with a mainly bearish or sideways direction given the low intensity of trading volumes. Fibonacci extensions show a value of 0.786 in the area of the current highs at 1.36135 and retracements at 1.34598, indicating that prices could remain stable until trading volumes change. Despite today's impactful news the price does not look like it will make overly sharp changes on the last day of the week.
And that's it! That's it! That's it folks!
Ion Jauregui - AT Analyst
*******************************************************************************************
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and such should be considered a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acing on the information provided does so at their own risk.