USD/CAD Technical Outlook
- USD/CAD reversal was extraordinarily laborious in-line with the chance commerce
- Downward bias favored shifting into subsequent week
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USD/CAD Technical Outlook: Large Reversal Units Up the Draw back
USD/CAD spiked laborious and reversed yesterday following the hotter-than-expected CPI print. This kind of worth motion places the draw back in play shifting ahead. Not solely did we get a significant each day reversal, however we are also about to put up a giant weekly (barring a giant rally right this moment). So long as yesterday’s excessive (quickly to turn out to be this week’s excessive) at 13977 isn’t exceeded it’s doubtless the buying and selling bias will stay bearish.
It’s potential that we see a bit extra bouncing round earlier than heading decrease, which might fill out a wedge sample that has an overthrow concerned in its improvement. When these kind the breakout is usually in-line with the overthrow.
That’s nonetheless a situation having but had the time to play out, and really may not. Both means, whether or not USD/CAD heads decrease from right here or fills out the sample the outlook is bearish. Only one is extra speedy than the opposite.
On the draw back, the subsequent large degree of help doesn’t arrive till final week’s low at 13503. Given the magnitude by which USD/CAD and shares, which have an especially robust inverse correlation, fell it appears fairly affordable that we’ll see that low, if not worse.
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USD/CAD Each day Chart
USD/CAD 4-hr Chart
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—Written by Paul Robinson, Market Analyst
You possibly can comply with Paul on Twitter at @PaulRobinsonFX
