Looking for a H4 close above 1.34???
USD/CAD:
The Consumer Price Index (CPI) out of Canada rose 2.0% on a year-over-year basis in July, matching the increase in June, according to Statistics Canada. Prices increased year over year in all eight major components. On a seasonally adjusted monthly basis, the CPI increased 0.4% in July, following a 0.1% decline in June. The USD/CAD came under immediate pressure following the release Wednesday, dominating the 1.33 handle and testing channel support etched from the low 1.3015.
As evident from the H4 timeframe this morning, price action is defending the channel support though faces resistance at 1.33. A decisive move above 1.33 exhibits scope to approach channel resistance fixed from the high 1.3186 and 1.34. What’s also notable from a technical perspective is a possible ABCD correction (black arrows) forming that terminates a shade above 1.34.
The longer-term technical picture continues to top just south of the 2017 yearly opening level at 1.3434, closely shadowed by trend line support-turned resistance. Focus on the daily timeframe remains centred around the 200-day SMA (orange at 1.3307), traced close by resistance drawn from 1.3382 and a closely converging 61.8% resistance at 1.3357.
Areas of consideration:
Additional buying, according to the weekly timeframe, is a possibility until we reach 1.3434. Therefore, daily resistances mentioned above at 1.3307, 1.3357 and 1.3382 may give way. A way of verifying buyer intent is on the back of a H4 close above 1.33, perhaps unbolting the door towards channel resistance/1.34. In the event this comes to fruition, a long above 1.33 is an option, either on the breakout candle, or on a possible retest motion. In any case, using the candlestick structure to base entry and risk levels from is likely the method of choice for many traders.
The Consumer Price Index (CPI) out of Canada rose 2.0% on a year-over-year basis in July, matching the increase in June, according to Statistics Canada. Prices increased year over year in all eight major components. On a seasonally adjusted monthly basis, the CPI increased 0.4% in July, following a 0.1% decline in June. The USD/CAD came under immediate pressure following the release Wednesday, dominating the 1.33 handle and testing channel support etched from the low 1.3015.
As evident from the H4 timeframe this morning, price action is defending the channel support though faces resistance at 1.33. A decisive move above 1.33 exhibits scope to approach channel resistance fixed from the high 1.3186 and 1.34. What’s also notable from a technical perspective is a possible ABCD correction (black arrows) forming that terminates a shade above 1.34.
The longer-term technical picture continues to top just south of the 2017 yearly opening level at 1.3434, closely shadowed by trend line support-turned resistance. Focus on the daily timeframe remains centred around the 200-day SMA (orange at 1.3307), traced close by resistance drawn from 1.3382 and a closely converging 61.8% resistance at 1.3357.
Areas of consideration:
Additional buying, according to the weekly timeframe, is a possibility until we reach 1.3434. Therefore, daily resistances mentioned above at 1.3307, 1.3357 and 1.3382 may give way. A way of verifying buyer intent is on the back of a H4 close above 1.33, perhaps unbolting the door towards channel resistance/1.34. In the event this comes to fruition, a long above 1.33 is an option, either on the breakout candle, or on a possible retest motion. In any case, using the candlestick structure to base entry and risk levels from is likely the method of choice for many traders.
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