$USDCAD - Different scenarios
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🔔 FOMC announcements are important today. The most important note expected from the FED Chairman would be announcement of the tapering asset purchases by the FED. The no-clue tapering asset purchases date might play a negative role to the US Dollar Index and since there will be a volatility, USD/CAD may jump to $1.2890 level and retrace to $1.2720 level pushed by the dynamic resistance of previous highs.
🔔 If the announcements are positive and the FOMC economic projection strengthens the confidence of investors in the US Dollar, then we might witness the USD/CAD’s continuation of an uptrend up to $1.29940 and $1.30900 levels, following an expanding diagonal pattern.
🔔 The second scenario looks least likely but indeed should be considered, this might take place if during the FOMC announcement rate hikes are adverted. In this case, in fear of rate hikes, the market might defect the US Dollar and USD/CAD might drop to $1.2580 and $1.2540 levels.
🔔 RSI and MACD indicators on a 4H USD/CAD signal the correction, namely a drop. RSI remains near overbought levels which show a decline when connecting the last three peaks. Key takeaways from the technical analysis are to watch the retest of the dynamic resistance of August 21, if USD/CAD closes above this level, the uptrend continuation will most likely take place with higher impulse. If there is a rejection, USD/CAD will correct to $1.2800 and $1.2720 below that.
✊🏻 Good luck with your trades! ✊🏻
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🔔 FOMC announcements are important today. The most important note expected from the FED Chairman would be announcement of the tapering asset purchases by the FED. The no-clue tapering asset purchases date might play a negative role to the US Dollar Index and since there will be a volatility, USD/CAD may jump to $1.2890 level and retrace to $1.2720 level pushed by the dynamic resistance of previous highs.
🔔 If the announcements are positive and the FOMC economic projection strengthens the confidence of investors in the US Dollar, then we might witness the USD/CAD’s continuation of an uptrend up to $1.29940 and $1.30900 levels, following an expanding diagonal pattern.
🔔 The second scenario looks least likely but indeed should be considered, this might take place if during the FOMC announcement rate hikes are adverted. In this case, in fear of rate hikes, the market might defect the US Dollar and USD/CAD might drop to $1.2580 and $1.2540 levels.
🔔 RSI and MACD indicators on a 4H USD/CAD signal the correction, namely a drop. RSI remains near overbought levels which show a decline when connecting the last three peaks. Key takeaways from the technical analysis are to watch the retest of the dynamic resistance of August 21, if USD/CAD closes above this level, the uptrend continuation will most likely take place with higher impulse. If there is a rejection, USD/CAD will correct to $1.2800 and $1.2720 below that.
✊🏻 Good luck with your trades! ✊🏻
If you like the idea hit the 👍🏻 button, follow me for more ideas.
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