USD/CAD still looking bearish around 1.29...
For those who read our previous report you may recall that we underlined the 1.29 handle/November’s opening level at 1.2892 seen on the H4 timeframe as a prospective base to sell from. Our rational behind selecting this area was largely due to the daily supply area seen at 1.2943-1.2885. The only concern here was the fact that weekly price was (and still is) seen trading above weekly resistance at 1.2778, and shows room to advance as far north as the weekly resistance area planted at 1.3006-1.3115.
Well done to those who managed to jump aboard here. Price dropped over 50 pips from 1.29. This should, as long as you placed stops above the aforesaid daily supply, have been enough of a move to lock in some profits and reduce risk.
Suggestions: We still have our eye on 1.29/1.2892 to sell, but would, after seeing that the level already responded and traded lower, now only consider it a valid sell zone if H4 price is able to print a full or near-full-bodied bearish candle. This, for us at least, is enough to suggest bearish intent. On the H4 scale, we do not see much stopping the unit from dropping as far south as the broken H4 Quasimodo line at 1.2823, making it an ideal take-profit target.
Data points to consider: FOMC member Kaplan speaks at 2.30pm; ISM manufacturing PMI at 3pm; FOMC member Harker speaks at 3.15pm; Canadian job’s figures at 1.30pm GMT.
Levels to watch/live orders:
• Buys: Flat (stop loss: N/A).
• Sells: 1.29/1.2892 (waiting for a reasonably sized H4 bearish candle to form – preferably a full or near-full-bodied candle – is advised, stop loss: ideally beyond the candle’s wick).
Well done to those who managed to jump aboard here. Price dropped over 50 pips from 1.29. This should, as long as you placed stops above the aforesaid daily supply, have been enough of a move to lock in some profits and reduce risk.
Suggestions: We still have our eye on 1.29/1.2892 to sell, but would, after seeing that the level already responded and traded lower, now only consider it a valid sell zone if H4 price is able to print a full or near-full-bodied bearish candle. This, for us at least, is enough to suggest bearish intent. On the H4 scale, we do not see much stopping the unit from dropping as far south as the broken H4 Quasimodo line at 1.2823, making it an ideal take-profit target.
Data points to consider: FOMC member Kaplan speaks at 2.30pm; ISM manufacturing PMI at 3pm; FOMC member Harker speaks at 3.15pm; Canadian job’s figures at 1.30pm GMT.
Levels to watch/live orders:
• Buys: Flat (stop loss: N/A).
• Sells: 1.29/1.2892 (waiting for a reasonably sized H4 bearish candle to form – preferably a full or near-full-bodied candle – is advised, stop loss: ideally beyond the candle’s wick).
Penafian
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