USD/CAD Daily: Confirmed below Pivot Level. Downside Prevails.
Trading idea: Bearish below 1.22 targeting 1.19
Risk event coming up:
- Bank of Canada (BOC) governor Stephen Poloz is due to speak on Tuesday April 28 at 1:45 PM GMT.. 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 Consumer Confidence by Conference Board (CB) released on Tuesday at 3 PM GMT. Financial confidence is a leading indicator of consumer spending, which accounts for a majority of overall economic activity. Better reading than the expected 102.6 would halt the USD/CAD drops.
Technical Analysis: The pair confirmed below the Ichimoku cloud as well as a key support level at 1.22. The RSI is heading down towards the oversold zone. 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|