USD/CAD(Netural)
Hello everyone :)
After we saw a strengthening of the Canadian Dollar and breaking lows against American Dollar maybe we will see a reversal where is USD is finally gaining momentum and here is a couple of reasons. First of all, we saw a big decrease of infected in the USA after all-time high in January where they reported a 300594 new cases in a day is started a big reversal where they are starting matching the number at January 9, so we can assume that maybe USA is starting to winning the battle against COVID19. Where is started an uptrend? It is started the day after January 20 were the BoC(Bank of Canada) reported the same interest rate of 0.25% for now, in that moment we saw a strengthening of CAD and a big drop at 55 pips in one hour. In the early Asian session of January 21, it started uptrend and it is confirmed by good data of Building Permits (Dec), Philadelphia Fed Manufacturing Index (Jan), Existing Home Sales (Dec), and decrease of Initial Jobless Claims. The main reason what gives USD a good momentum is keeping the same interest rate of 0.25% this week. On the other side, CAD had a bearish momentum is reasons of low infection and good data from USD of Crude Oil Inventories where they bought more Crude Oil and the reason is that the USA economy is waking up. From a technical point of view, we haw two scenarios. First is what USD will go up, because we can see a forming a HH and HL where, previous high is broken by new highs, and previous lows aren't broken by new lows. At the moment we can see a testing a support line at a price of 1.27737(depends on your trading style) an ascending channel. If you put EMA 200 you can see a testing EMA on Friday and didn't break it down, it can be a good indicator that USD has a bullish momentum. There is also a bullish divergence and need to wait also price action confirmation. For buy entry, we need to wait for a bullish signal. SL will be under the previous high and TP will be a price of 1.29277. For the bearish scenario, we have a bearish flag pattern because conceptually point of view have a big downtrend, bearish divergence, and we see a price dropping it will be formed a head and shoulder. For entry sell, we can wait for a forming head shoulder and bearish candle. THE first TP will be at the bearish flag and the second TP will be at a price of 1.27747.
WHAT DO YOU THINK ABOUT THIS SETUP?
Please let me know in the comment section!
THANKS FOR READING!
If you have some different opinions please let me know and if you like this please hit that like button and give me support, I will appreciate every support.
Remember this analysis is not 100% accurate. No single analysis is. To make a decision follow your own thoughts. The information given is not Financial advice.
After we saw a strengthening of the Canadian Dollar and breaking lows against American Dollar maybe we will see a reversal where is USD is finally gaining momentum and here is a couple of reasons. First of all, we saw a big decrease of infected in the USA after all-time high in January where they reported a 300594 new cases in a day is started a big reversal where they are starting matching the number at January 9, so we can assume that maybe USA is starting to winning the battle against COVID19. Where is started an uptrend? It is started the day after January 20 were the BoC(Bank of Canada) reported the same interest rate of 0.25% for now, in that moment we saw a strengthening of CAD and a big drop at 55 pips in one hour. In the early Asian session of January 21, it started uptrend and it is confirmed by good data of Building Permits (Dec), Philadelphia Fed Manufacturing Index (Jan), Existing Home Sales (Dec), and decrease of Initial Jobless Claims. The main reason what gives USD a good momentum is keeping the same interest rate of 0.25% this week. On the other side, CAD had a bearish momentum is reasons of low infection and good data from USD of Crude Oil Inventories where they bought more Crude Oil and the reason is that the USA economy is waking up. From a technical point of view, we haw two scenarios. First is what USD will go up, because we can see a forming a HH and HL where, previous high is broken by new highs, and previous lows aren't broken by new lows. At the moment we can see a testing a support line at a price of 1.27737(depends on your trading style) an ascending channel. If you put EMA 200 you can see a testing EMA on Friday and didn't break it down, it can be a good indicator that USD has a bullish momentum. There is also a bullish divergence and need to wait also price action confirmation. For buy entry, we need to wait for a bullish signal. SL will be under the previous high and TP will be a price of 1.29277. For the bearish scenario, we have a bearish flag pattern because conceptually point of view have a big downtrend, bearish divergence, and we see a price dropping it will be formed a head and shoulder. For entry sell, we can wait for a forming head shoulder and bearish candle. THE first TP will be at the bearish flag and the second TP will be at a price of 1.27747.
WHAT DO YOU THINK ABOUT THIS SETUP?
Please let me know in the comment section!
THANKS FOR READING!
If you have some different opinions please let me know and if you like this please hit that like button and give me support, I will appreciate every support.
Remember this analysis is not 100% accurate. No single analysis is. To make a decision follow your own thoughts. The information given is not Financial advice.
Penafian
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