The USDCAD pair has been, since the 7th of December 2016, oscillating within a bearish formation from 1.3295 to 1.3137. Will the sellers resume leading the price?
Today’s major pivot point area is the 1.3137 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 1.3137 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 30 zone.
In the scenario where the pair decelerates, the price could fall to 1.3039.
Alternatively, in the event where the sellers are not able to hold the price below the 1.3198 area, and the buyers place greater pressures, the pair could rise back to 1.3295.
- The Import Price Index (MoM) (Nov), the Export Price Index (MoM) (Nov), the Import Price Index (YoY) (Nov) and the Export Price Index (YoY) (Nov) releases are expected to have a medium influence on the U.S. dollar
- There are no any releases that could have an impact on the Canadian dollar
· Probable trend (Bearish): 1.3137
· Bearish take profit target: 1.3039
· Stop loss target: 1.3198
· Alternative trend (Bullish): 1.3198
· Bullish take profit target: 1.3295