USD/CAD Trading Signal: Bearish Below Pivot

USD/CAD Trading Signal: Bearish Below Pivot

5:00 PM EST

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
1.1988 1.22 1.26
1.1730 1.24 1.27