The Daily Forecaster: USDCAD
Price: 1.0355
Bias: Mixed - waiting for breaks
The underlying MT direction is neutral while the daily bias is neutral. Therefore it may be better to sit out of the market or trade breaks when supported by bullish or bearish set up patterns. It is advisable to study both lower and higher time frame charts for evidence to support a trade in either direction It may well be advisable to take profits when seen or if there is a larger break out to consider using a trailing stop to protect profits
Consider buy set ups at: 1.0371-94 or 1.0134-43
Consider sell set ups at: 1.0494 or 1.0295
| Resistance |
1.0371 |
1.0394 |
1.0421 |
1.0441-61 |
1.0494 |
1.0527 |
| Support |
1.0343 |
1.0330 |
1.0298-02 |
1.0255 |
1.0200-20 |
1.0134-43 |
Daily Outlook
This pair has the knack of doing what is least expected when in a consolidation phase. Therefore, until the 1.0394 high is broken I would prefer to remain neutral. However, to retain a bullish outlook I do feel the 1.0330-43 area is important. While it holds there remains the risk that we could see direct follow-through above 1.0394 which would extend gains to the1.0441-61 area followed by a correction and final move to the 1.0494-02 resistance. Also note 1.0527 and the 1.0585 high.
If this actually breaks below 1.0330 it will raise the risk of follow-through lower again. However, I'd still prefer a break of the 1.0298 low that would provide the catalyst for a decline to the 1.0255 low and probably beyond to the 1.0200-20 area for a correction before the final move to the 1.0134-43 target.
Medium Term Outlook
29th July:
The erratic and whippy price development continues. Either we'll see a move down to the 1.0138 area before a recovery or the rally will resume directly above 1.0394 to 1.0470-90 initially but then to 1.0585-06 en route the 1.0851 high. Both are forms of triangle, the first symmetrical and the second ascending...
Below 1.0130 would target the 0.9929 low... above 1.0851 is required to break the weekly consolidation |
