The USDCAD pair has been, since the 13th of October 2016, oscillating within a bearish formation from 1.3306 to 1.3050. Will the sellers resume leading the price?
Today’s major pivot point area is the 1.3148 level where the sellers will likely take their chances to resume leading the price to their favour.
The latest stabilization of the pair below the 1.3148 level is a good indication that the sellers may exert greater pressures to force the price to the downside.
The Stochastic oscillator has also confirmed that the price could aggressively drop at the 80 zone.
In the scenario where the pair decelerates, the price could fall to 1.3050.
Alternatively, in the event where the sellers are not able to hold the price below the 1.3209 area, and the buyers place greater pressures, the pair could rise back to 1.3306.
- The Initial Jobless Claims (Oct 14) and the Philadelphia Fed Manufacturing Survey (Oct) releases are expected to have a medium impact on the U.S. dollar
- There are no any releases that could have an impact on the Canadian dollar
· Probable trend (Bearish): 1.3148
· Bearish take profit target: 1.3050
· Stop loss target: 1.3209
· Alternative trend (Bullish): 1.3209
· Bullish take profit target: 1.3306