- Today's chart shows a spinning top candlestick with a double top on USD/CAD. Sign of possible reversal or simply major correction.
- DXY touched major psychological resistance at 100.
- Oil seems to be bottoming.
European leaders, Draghi, Merkel and Lagarde had positive comments about Eurozone recovery. They are very optimistic, "Confident on growth". ...
Greek decision today will either fuel USD/CAD short at resistance for a strong sell. I believe USD/CAD will need a strong push from these fundamentals to push through the resistance. I'm keeping an eye on this. Tomorrow's Yellen testimony is of importance.
DXY is now at resistance in a down trend. It's also bumping up against a major weekly trendline resistance. If we continue to get negative US data the downtrend should continue.
USD/CAD is due for a correction. With the US set to taper and economic data is negative while CAD data is positive this morning. USD/CAD has reached a major resistance just shy of 1.12. Possibly the combination needed to bring the pair into a full correction. Pivot point is 1.113, so short if it drops below 1.113
Possible Top in usd/cad pair as market sentiment shifts. TD Securities among other major players are starting to change their forecasts to bearish. www.fxstreet.com
Also bias lower in usd/jpy market sentiment and Wednesday's BOC rate decision may help the usd/cad pair to start it's descending journey to the trend line support shown.
USD/CAD is clearly overbought and at risk of a pullback. It is entering a major resistance area while simultaneously Eur/Cad is also close to a major 1.50. Cad is also at major resistance at the round 0.91 level. All pairs are simultaneously at major intersections. Prepare for possible reversal.
USD/CAD major resistance on the weekly and monthly chart coincides with a major resistance in oil price. Cad tends to correlate with oil price. Beware of possible change in trend in both USD/CAD and oil.
