USD/CAD Daily: Broker below Pivot Level. Bearish Sentiment.
Trading idea: Bearish below 1.22 targeting 1.19
Risk event coming up:
- Bank of Canada (BOC) governor Stephen Poloz is due to speak. As head of the central bank, which controls short term interest rates, he has more influence over the nation’s currency value than any other person. If he has a more hawkish tone than expected, we can se further CAD strength, ultimately driving the USD/CAD pair lower.
- US Core Durable Goods Orders are soon to be released and if worse than expected, we could see further drops.
Technical Analysis: The pair finally broke below the Ichimoku cloud and the second turning point of 1.22 with the RSI head down below the neutrality area. The next support level is set at 38% Fibonacci level at 1.1988
Alternative Scenario: Above 1.24 look for further upside towards 1.25.
Where I’m setting my stops and limits:
| Support Levels | Turning Point | Resistance Levels |
|---|---|---|
| 1.1988 | 1.22 | 1.26 |
| 1.1730 | 1.24 | 1.27 |
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