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19 May 2014
USD/CAD is dangerously close to 1.0850 support
FXStreet (Moscow) - USD/CAD tested waters below 1.0850 support, but retreated to current levels of 1.0853. Bears are sure to have another try.
USD/CAD is getting ready for harsh movements
USD/CAD had its third bearish week in a row, though the pair managed to settle somewhere in the middle of 1.0800 range. Overall USD weakening has a lot to do with the dynamics of USD/CAD, though positive CAD sentiments due to FED-BoC rate expectation differential also added to the decline. As there are no meaningful macroeconomic reports that may affect the market sentiments, the pair is left at the mercy of technical and speculative factors. Reported demand on approach to 1.08050 is likely to limit early bearish pressure, but once we are below it, the downside will be extended to 1.0830. Resistance is seen at 1.0890 and followed by 1.0900.
What price levels and patterns have to be considered?
Spot is presently trading at 1.0857, and next resistance can be seen at 1.0860 (Weekly Low), 1.0864 (Daily Open), 1.0866 (Hourly 20 EMA), 1.0868 (Daily Classic PP) and 1.0868 (Daily High).
Support below can be found at 1.0854 (Yesterday's Low), 1.0848 (Daily Low), 1.0846 (Daily Classic S1), 1.0832 (Daily Classic S2) and 1.0831 (Monthly Low).
Looking at price patterns, we can see a Doji 1-hour candlestick formation.
USD/CAD is getting ready for harsh movements
USD/CAD had its third bearish week in a row, though the pair managed to settle somewhere in the middle of 1.0800 range. Overall USD weakening has a lot to do with the dynamics of USD/CAD, though positive CAD sentiments due to FED-BoC rate expectation differential also added to the decline. As there are no meaningful macroeconomic reports that may affect the market sentiments, the pair is left at the mercy of technical and speculative factors. Reported demand on approach to 1.08050 is likely to limit early bearish pressure, but once we are below it, the downside will be extended to 1.0830. Resistance is seen at 1.0890 and followed by 1.0900.
What price levels and patterns have to be considered?
Spot is presently trading at 1.0857, and next resistance can be seen at 1.0860 (Weekly Low), 1.0864 (Daily Open), 1.0866 (Hourly 20 EMA), 1.0868 (Daily Classic PP) and 1.0868 (Daily High).
Support below can be found at 1.0854 (Yesterday's Low), 1.0848 (Daily Low), 1.0846 (Daily Classic S1), 1.0832 (Daily Classic S2) and 1.0831 (Monthly Low).
Looking at price patterns, we can see a Doji 1-hour candlestick formation.