USD/CAD:
Wednesday saw the Bank of Canada hold rates steady at 1.75%, as expected. The central bank dropped its 'hiking bias' from its policy statement, while also cutting near-term growth forecasts. Alongside a reigning dollar crossing swords with fresh 2019 highs (US dollar index), the USD/CAD rallied half a percent and concluded the day challenging 1.35 on the H4 timeframe.
According to our technical studies, the likelihood of 1.35 holding as resistance is doubtful. Weekly price is establishing a position beyond its 2017 yearly opening level at 1.3434, perhaps clearing the pathway north towards the 2018 yearly high of 1.3664. In addition to this, daily flow broke out of a symmetrical triangle formation. Traders are likely looking for this pattern to hit a take-profit target around resistance at 1.3645 (the T.P was calculated by adding the base distance to the breakout level ).
Areas of consideration:
On account of the technical picture, a long above 1.35 is an idea worth exploring today. A H4 close above this number that’s followed up with a retest as support (preferably by way of a H4 bullish candlestick pattern – entry and risk can be determined according to this structure) would likely be enough evidence to draw in buyers towards at least H4 resistance at 1.3570 (not seen on the screen).
Today’s data points: US Core Durable Goods Orders m/m; US Durable Goods Orders m/m; US Unemployment Claims.
Wednesday saw the Bank of Canada hold rates steady at 1.75%, as expected. The central bank dropped its 'hiking bias' from its policy statement, while also cutting near-term growth forecasts. Alongside a reigning dollar crossing swords with fresh 2019 highs (US dollar index), the USD/CAD rallied half a percent and concluded the day challenging 1.35 on the H4 timeframe.
According to our technical studies, the likelihood of 1.35 holding as resistance is doubtful. Weekly price is establishing a position beyond its 2017 yearly opening level at 1.3434, perhaps clearing the pathway north towards the 2018 yearly high of 1.3664. In addition to this, daily flow broke out of a symmetrical triangle formation. Traders are likely looking for this pattern to hit a take-profit target around resistance at 1.3645 (the T.P was calculated by adding the base distance to the breakout level ).
Areas of consideration:
On account of the technical picture, a long above 1.35 is an idea worth exploring today. A H4 close above this number that’s followed up with a retest as support (preferably by way of a H4 bullish candlestick pattern – entry and risk can be determined according to this structure) would likely be enough evidence to draw in buyers towards at least H4 resistance at 1.3570 (not seen on the screen).
Today’s data points: US Core Durable Goods Orders m/m; US Durable Goods Orders m/m; US Unemployment Claims.
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