Canadian Greenback Outlook
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USD/CAD – Stalled Rally
On Nov 14, USD/CAD rallied in the direction of 1.3270- its highest stage in 5 weeks. Nevertheless, the value slipped after, then closed the weekly candlestick with a bearish Doji sample, highlighting purchaser’s hesitation at this stage.
Final week, the Relative Energy Index (RSI) remained flat above 50, indicating to a paused uptrend momentum. This week the oscillator dropped from 60 to 52 emphasizing much less patrons available in the market.
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USD/CAD DAILY PRICE CHART (AUg 15, 2017 – Nov 19, 2019) Zoomed Out
USD/CAD DAILY PRICE CHART (June 10– Nov 19, 2019) Zoomed In
From the each day chart, we discover final week USD/CAD failed in a number of events in closing above the excessive finish of present buying and selling zone 1.3166 – 1.3256, reflecting purchaser’s exit from the market. Subsequently, the pair pointed decrease as mentioned in our final replace, then closed yesterday under 50-day common searching for a check of the low finish of the zone.
An in depth under the low finish, might open the door for sellers to take the initiative and press USDCAD in the direction of 1.3064. Though, the weekly assist ranges underlined on the chart (zoomed in) provide potential exit factors for them. Therefore, an in depth consideration ought to be paid to these ranges.
That mentioned, any U-turn earlier than testing the low finish of the zone would imply purchaser’s try and resume main the value. Even so, an in depth above its excessive finish could also be wanted to pave the way in which in the direction of 1.3357. In that situation, the weekly resistance ranges underscored on the chart ought to be saved in focus.
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USD/CAD 4 hour PRICE CHART (Oct eight – Nov 19, 2019)
Trying on the four- hour chart, we discover on Friday USD/CAD broke under the neckline of double prime sample situated at 1.3235 eyeing a check of 1.3203. Yesterday, the pair rebounded from this stage as sellers took revenue.
A break under 1.3196 may trigger extra bearishness in the direction of 1.3171. But, the each day assist stage underlined on the chart ought to be thought-about. On the flip aspect, a break above 1.3247 might push the value in the direction of the Nov 14 excessive at 1.3270. Though, the excessive finish of the aforementioned buying and selling zone mentioned above on the each day chart can be price monitoring.
See the chart to know extra about key ranges to watch in an additional bullish/bearish transfer.
Written By: Mahmoud Alkudsi
Please be happy to contact me on Twitter: @Malkudsi