Market Sentiment: Bearish
Key Takeaways:
USDCAD continues correction spree
Dollar (CAD) on Tuesday, dragging the price of USDCAD to less than 1.1285 as the downward slope channel holds off. The short term bias remains bearish due to Lower Low on the four-hour timeframe.
Technical Analysis
As of this writing, the pair is being traded around 1.1284. A hurdle may be seen near 1.1300, the 100-Day Simple Moving Average (SMA) as well as psychological number ahead of 1.1310, the 23.6% fib level and then 1.1340, the 38.2% fib level as demonstrated in the following chart. A break and four-hour closing above the upper trendline channel could incite a renewed buying interest, validating a fresh rally towards the 1.1463 resistance area.
On the downside, the pair is expected to find a support around 1.1263-50, the confluence of 200-Day Simple Moving Average (SMA), trendline support as well as swing low of the recent downside move. The bias will remain bearish as long as the 1.1327 resistance area is intact.
US Housing Market Index
The National Association of Home Builders will release the Housing Market Index report today during the New York session. According to the average forecast of difference economists, the index remained 55 points in November as compared to 54 points in the month before. Generally speaking, higher housing index reading is considered positive for the economy thus a better than expected actual outcome will be seen as bullish for USDCAD and vice versa.
Trade Idea
Considering the overall technical and fundamental outlook, buying or selling the pair on a breakout through the slope channel appears to be a good strategy in short to medium term.
Another Interesting Read: Euro Set For the “Takeoff” As Zew Survey Looms
Key Takeaways:
USDCAD continues correction spree
- The pair holds off downward slope channel
- 1.1463 remains key resistance area
- The US Dollar (USD) extended downside movement against the Canadian
Dollar (CAD) on Tuesday, dragging the price of USDCAD to less than 1.1285 as the downward slope channel holds off. The short term bias remains bearish due to Lower Low on the four-hour timeframe.
Technical Analysis
As of this writing, the pair is being traded around 1.1284. A hurdle may be seen near 1.1300, the 100-Day Simple Moving Average (SMA) as well as psychological number ahead of 1.1310, the 23.6% fib level and then 1.1340, the 38.2% fib level as demonstrated in the following chart. A break and four-hour closing above the upper trendline channel could incite a renewed buying interest, validating a fresh rally towards the 1.1463 resistance area.
On the downside, the pair is expected to find a support around 1.1263-50, the confluence of 200-Day Simple Moving Average (SMA), trendline support as well as swing low of the recent downside move. The bias will remain bearish as long as the 1.1327 resistance area is intact.
US Housing Market Index
The National Association of Home Builders will release the Housing Market Index report today during the New York session. According to the average forecast of difference economists, the index remained 55 points in November as compared to 54 points in the month before. Generally speaking, higher housing index reading is considered positive for the economy thus a better than expected actual outcome will be seen as bullish for USDCAD and vice versa.
Trade Idea
Considering the overall technical and fundamental outlook, buying or selling the pair on a breakout through the slope channel appears to be a good strategy in short to medium term.
Another Interesting Read: Euro Set For the “Takeoff” As Zew Survey Looms
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