USDCAD Ranging Across Flat Ichimoku
So…Bank of Canada left rates unchanged on Wednesday and left USDCAD ranging across flat Ichimoku. What does this mean from a trading strategy standpoint? Read-on to find out!
USDCAD Ranging Across Flat Ichimoku – Kiana Danial Reports
USDCAD Ranging Across Flat Ichimoku | Technical Analysis
The USD/CAD pair gained back some of the losses from the beginning of the week once BOC left interest rates unchanged. However last week’s break above the Ichimoku cloud was incredibly short-lived and was followed by a strong bearish engulfing candlestick pattern and a break back below the cloud. This indicated mixed signals for the pair.
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It seems like the pair has fallen under a comfort range between 1.3250 and 1.27. Additionally, USDCAD ranging across FLAT Ichimoku.
So unless we have a concrete break above 1.3250 we may need to apply a range trading strategy to our portfolio for USD/CAD. Extended resistance is set at 50% Fibonacci level at 1.35.
USDCAD Ranging Across Flat Ichimoku- Technical Analysis
On Thursday the US is set to release their Initial Jobless Claims at 12:30 PM GMT and their Consumer Credit (JUL) at 7 PM GMT. Better than expected results could push the pair up towards the Ichimoku cloud.
On Friday we have Canada’s Unemployment Rate for August which will be out during the New York session at 12:30 PM GMT. Their jobless claims rate is expected to have remained unchanged and a worse than expected outcome could push the USD/CAD pair further up and perhaps even above the Ichimoku cloud.
Next the US will release their Wholesale Inventories data at 2 PM to end the trading day. While this is a minor event, a better than expected result could further amplify a short-lived bullish sentiment within our range.
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Unless we see a major change of events in the US and Canada, the USD/CAD pair could bounce up and down between 1.2750 and 1.32. So you can “buy low and sell high” within this range on a medium term basis.
More on Economic Calendar
London Session: We have the very highly anticipated European Central Bank (ECB) Rate Decision at 11:45 AM GMT and their Monetary policy press conference at 12:30 PM in Frankfurt, Germany. Depending on the tone of Mario Draghi we could expect a ton of volatility on the EUR crosses.
Asian session: Early during the Asian session China will release their Consumer Price Index for August
London Session: Switzerland is scheduled to release their Unemployment Rate at 5:45 AM GMT. Later UK’s Trade Balance will be out at 8:30 AM GMT
Here are Invest Diva’s calculations for important USD/CAD approximate levels to keep an eye on:
|Support Levels||Turning Point||Resistance Levels|