1.33 likely to offer a potential support in this market...
USD/CAD:
In response to Wednesday’s lackluster Canadian retail sales figures (fell to -0.9% from 0.3% in November and missed expectations of -0.6%), the US dollar gained traction against its Canadian counterpart just north of the 1.33 handle. The move erased the majority of daily losses, though the H4 candles failed to overthrow channel resistance (extended from the high 1.3297).
With the recent bout of buying in the rearview mirror, a H4 demand-turned resistance area is now on the radar at 1.3420-1.3390, which happens to clench within it a round number at 1.34 and a 161.8% H4 Fibonacci extension point at 1.3403.
Against the backdrop of H4 flow, the bigger picture remains unchanged in terms of structure. After weekly price rebounded off support at 1.3223, the current candle appears poised to cross swords with the 2017 yearly opening level at 1.3434. Closer analysis on the daily timeframe reveals the unit shook hands with a daily Quasimodo support at 1.3181 in recent trade. This level, as you can see, is situated just south of the current weekly support level. As long as the buyers continue to defend the said supports, the next port of call to the upside from here falls in around trend line support-turned resistance (extended from the low 1.2782), though it appears weekly resistance is likely to enter the fray beforehand.
Areas of consideration:
As both weekly and daily structure suggest buyers govern movement at the moment, a retest off 1.33 is likely still of interest to many traders.
The idea is for H4 sellers to enter the fold off its channel resistance (highlighted above) and tackle 1.33. Concerning upside targets from this number, traders will likely be looking at the H4 channel resistance as a potential trouble area, followed then by a H4 resistance zone mentioned above at 1.3420-1.3390.
As mentioned in previous reports, stop runs through round numbers are common viewing, therefore, waiting for additional bullish candlestick confirmation to form (entry/stop parameters can be defined according to this pattern) off 1.33 is highly recommended before pressing the buy button.
Today’s data points: Limited.
In response to Wednesday’s lackluster Canadian retail sales figures (fell to -0.9% from 0.3% in November and missed expectations of -0.6%), the US dollar gained traction against its Canadian counterpart just north of the 1.33 handle. The move erased the majority of daily losses, though the H4 candles failed to overthrow channel resistance (extended from the high 1.3297).
With the recent bout of buying in the rearview mirror, a H4 demand-turned resistance area is now on the radar at 1.3420-1.3390, which happens to clench within it a round number at 1.34 and a 161.8% H4 Fibonacci extension point at 1.3403.
Against the backdrop of H4 flow, the bigger picture remains unchanged in terms of structure. After weekly price rebounded off support at 1.3223, the current candle appears poised to cross swords with the 2017 yearly opening level at 1.3434. Closer analysis on the daily timeframe reveals the unit shook hands with a daily Quasimodo support at 1.3181 in recent trade. This level, as you can see, is situated just south of the current weekly support level. As long as the buyers continue to defend the said supports, the next port of call to the upside from here falls in around trend line support-turned resistance (extended from the low 1.2782), though it appears weekly resistance is likely to enter the fray beforehand.
Areas of consideration:
As both weekly and daily structure suggest buyers govern movement at the moment, a retest off 1.33 is likely still of interest to many traders.
The idea is for H4 sellers to enter the fold off its channel resistance (highlighted above) and tackle 1.33. Concerning upside targets from this number, traders will likely be looking at the H4 channel resistance as a potential trouble area, followed then by a H4 resistance zone mentioned above at 1.3420-1.3390.
As mentioned in previous reports, stop runs through round numbers are common viewing, therefore, waiting for additional bullish candlestick confirmation to form (entry/stop parameters can be defined according to this pattern) off 1.33 is highly recommended before pressing the buy button.
Today’s data points: Limited.
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