Flat on USD/CAD too...
The USD/CAD bulls went on the offensive on Tuesday, eventually breaking through the 1.28 handle and connecting with a H4 Quasimodo resistance planted at 1.2823. The Quasimodo line was highlighted in yesterday’s report as a potential sell zone, but we were looking for H4 price to chalk up a bearish selling wick that pierced through 1.28 and tapped orders around 1.2833 as a way of trade confirmation (a bearish pin bar). As you can see this did not happen, so we passed. 1.2823 responded nicely on the m30 intraday chart, nonetheless, which brought the candles back down to the 1.28 neighborhood.
On the weekly timeframe, it is likely a concerning time for sellers as weekly price recently crossed back above weekly resistance at 1.2778. Turning our attention to the daily timeframe, however, daily price is seen trading within shouting distance of a daily trendline resistance drawn from the low 1.2061. Could this daily line be enough to halt buying above weekly resistance?
Suggestions: A sell at the noted H4 Quasimodo resistance level is considered a risk at the moment. Besides 1.28 being a potential support, one also has to take into account the position of price on the weekly timeframe (see above). A buy at current prices, nevertheless, would be just as risky, in our view. This is largely due to the daily trendline resistance mentioned above, and also we believe that it is far too early to tell if the weekly resistance level is consumed or not.
Data points to consider: US prelim GDP q/q and FOMC member Dudley speech at 1.30pm; Fed Chair Yellen testifies and US pending home sales m/m at 3pm GMT.
On the weekly timeframe, it is likely a concerning time for sellers as weekly price recently crossed back above weekly resistance at 1.2778. Turning our attention to the daily timeframe, however, daily price is seen trading within shouting distance of a daily trendline resistance drawn from the low 1.2061. Could this daily line be enough to halt buying above weekly resistance?
Suggestions: A sell at the noted H4 Quasimodo resistance level is considered a risk at the moment. Besides 1.28 being a potential support, one also has to take into account the position of price on the weekly timeframe (see above). A buy at current prices, nevertheless, would be just as risky, in our view. This is largely due to the daily trendline resistance mentioned above, and also we believe that it is far too early to tell if the weekly resistance level is consumed or not.
Data points to consider: US prelim GDP q/q and FOMC member Dudley speech at 1.30pm; Fed Chair Yellen testifies and US pending home sales m/m at 3pm GMT.
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