Further upside possible on USD/CAD
USD/CAD:
The USD/CAD preserved a strong bid Wednesday, surging through 1.35 to fresh multi-month tops at 1.3546. The Canadian Dollar remained on the defensive after the Bank of Canada (BoC) decided to leave benchmark interest rates unchanged at 1.75%.
Since the latter part of April, the H4 candles have been busy carving out a 100-point+ range between May’s opening level at 1.3393/1.34 and the round number 1.35. With price action firmly breaking the top edge of this region yesterday, further buying is likely in store to at least resistance at 1.3570 (not seen on the screen).
Higher-timeframe flow has weekly price surging from the 2017 yearly opening level at 1.3434, targeting a possible run towards the 2018 yearly high of 1.3664. Daily action, after feeding off support drawn from the top edge of a pennant pattern (1.3467) for the past month, looks to also be heading higher. Although the traditional price target (calculated by taking the distance from the beginning of the preceding move and adding it to the breakout price) remains on the chart at 1.3768 (black arrows), the next upside target from a structural standpoint falls in around resistance at 1.3645.
Areas of consideration:
According to our technical reading, traders have the choice of either buying the breakout candle (at current price) and placing stop-loss orders beneath its tail (1.3484), or waiting and seeing if a retest scenario takes shape and entering on the back of the rejection candle’s structure. The next upside target on the H4 scale can be seen around 1.3570 (not seen on the screen), though according to the higher timeframes we could be heading much higher.
Today’s data points: US Prelim GDP q/q; FOMC Member Clarida Speaks; Canadian Current Account; Gov. Council Member Wilkins Speaks.
The USD/CAD preserved a strong bid Wednesday, surging through 1.35 to fresh multi-month tops at 1.3546. The Canadian Dollar remained on the defensive after the Bank of Canada (BoC) decided to leave benchmark interest rates unchanged at 1.75%.
Since the latter part of April, the H4 candles have been busy carving out a 100-point+ range between May’s opening level at 1.3393/1.34 and the round number 1.35. With price action firmly breaking the top edge of this region yesterday, further buying is likely in store to at least resistance at 1.3570 (not seen on the screen).
Higher-timeframe flow has weekly price surging from the 2017 yearly opening level at 1.3434, targeting a possible run towards the 2018 yearly high of 1.3664. Daily action, after feeding off support drawn from the top edge of a pennant pattern (1.3467) for the past month, looks to also be heading higher. Although the traditional price target (calculated by taking the distance from the beginning of the preceding move and adding it to the breakout price) remains on the chart at 1.3768 (black arrows), the next upside target from a structural standpoint falls in around resistance at 1.3645.
Areas of consideration:
According to our technical reading, traders have the choice of either buying the breakout candle (at current price) and placing stop-loss orders beneath its tail (1.3484), or waiting and seeing if a retest scenario takes shape and entering on the back of the rejection candle’s structure. The next upside target on the H4 scale can be seen around 1.3570 (not seen on the screen), though according to the higher timeframes we could be heading much higher.
Today’s data points: US Prelim GDP q/q; FOMC Member Clarida Speaks; Canadian Current Account; Gov. Council Member Wilkins Speaks.
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