Yesterday the Canadian Dollar surged before the US opening bell and we saw CAD gaining mainly against US Dollar and Japanese Yen. But still the currency wasn’t as strong as the other majors like AUD, EUR and GBP, where Canadian Dollar was still weaker. CAD sold-off again after the US markets closed, and we got the announcement that Gary Cohn is resigning.
Looking at the 4h chart on the CAD/JPY, we were seeing this pair gaining throughout the day, but then once the US Markets closed, the pair dropped to its support level at 81.400. The steep down-trend that started on the 2nd of February is still intact. If we get a break below the 81.400 level, then this opens the path towards the next good area of support at 80.600.
On the other hand, a move back up towards the 82.500 area, could push it closer to the previously mentioned down-ward trendline and could test it from underneath. We should be cautious at that area, as a break above that, could indicate a change in direction, at least for the short-term. If CAD/JPY does get a break like that, then the next area to watch out for would be around 83.650 and then potentially 84.450. Also, the MACD is below 0 mark, but it looks like it is aiming north, which indicates that bulls are trying to jump back into this pair.
I am Long for now, but with a Stop at 81.400
Looking at the 4h chart on the CAD/JPY, we were seeing this pair gaining throughout the day, but then once the US Markets closed, the pair dropped to its support level at 81.400. The steep down-trend that started on the 2nd of February is still intact. If we get a break below the 81.400 level, then this opens the path towards the next good area of support at 80.600.
On the other hand, a move back up towards the 82.500 area, could push it closer to the previously mentioned down-ward trendline and could test it from underneath. We should be cautious at that area, as a break above that, could indicate a change in direction, at least for the short-term. If CAD/JPY does get a break like that, then the next area to watch out for would be around 83.650 and then potentially 84.450. Also, the MACD is below 0 mark, but it looks like it is aiming north, which indicates that bulls are trying to jump back into this pair.
I am Long for now, but with a Stop at 81.400