We have weekly resistance, strong daily trend line and price has been ranging in a zone for the past 7 weeks.
We feel price will break out the zone to the downside and break through the trend line making explosive bearish movement.
This is not a signal and we are not in this trade at the moment, but we will notify our VIP clients once this trade does become valid.
We can see price has just bounced off our support level and no we can see a bullish run up to our resistance zone ( green box )
This analysis lines up or correlates with an oil trade we have on, this is because as the price of oil goes down this pairing goes up ( inverse coloration ) if you want to know more about why this happens then inbox me or use google ;p ...
We have seen price bounce back from the 1.34530 area to 1.32831 where it meets previous support.
We also see a daily inside closure and further upside movement on the pair today.
Further confirmation of the following can be taken in to consideration also.
1 - Daily Inside bar closure above the previous day - shows us buyers are coming into the market...
The US Dollar has been motoring over the Loonie for a while now and it has reached a demand point which has shown to be a turning point. We could see this pair going down to possibly 1.25000 psychological level.
Okay guys firstly it is NFP tomorrow, however USDCAD daily chart is indicating a swing in play. Therefore following technicall analysis we should see a weaken dollar, I would suggest to expect to see lows of 1.28500 within next week.