Daily view: (Slightly revised). From this angle, we can see that price is, in our opinion, trading mid-range between daily supply at 0.9411-0.9336, and daily demand coming in at 0.8982-0.9088 (surrounds a weekly swap level seen at 0.9018).
4hr view: The open 0.9147 saw the USD/CAD pair rally during yesterday’s sessions. This rally found some downward pressure to contend with early on at 0.9200, but eventually broke above it and continued on its way north. Price is, at the time of writing, trading just below a very fresh 4hr supply area coming in at 0.9296-0.9267. Usually, we would announce that we’re going to be looking for shorts in and around this area. However, with both the round number 0.9300 and a 4hr reversal zone at 0.9322/0.9298 sitting just above, it is very hard to deny that fakeout could be seen above the 4hr . On top of that, the 4hr reversal zone coincides beautifully with the current 4hr trend and is located just below the aforementioned daily supply area – not a bad place to be looking for shorts!
Therefore, with everything taken into consideration, our prime focus for today will be the 4hr reversal zone. Lower timeframe confirmation is still required for us to short here, since price could just as easily fake higher towards the extreme 4hr supply seen marked with a pink circle at 0.9357-0.9336.
Levels to watch/ live orders:
• Buys: Flat (Predicative stop-loss orders seen at: N/A).
• Sells: 0.9322/0.9298 (Predicative stop-loss orders seen at: 0.9328).