Good support at the 1.3400 level for the USDCAD, the highs are getting lower on the daily chart, but not that much. A breakout may happen in any direction, but there are more chances of it happening to the downside, like a retracement.
USD/CAD couldn't break below 1.3400, good thing I closed my short position on time. There are a pair of shooting star bars on the 1H time-frame below the resistance at 1.3460, so I think there might be another attempt for a move to the downside.
Althought USD/CAD is still mostly consolidating sideways I also noticed the pair of very well-formed doji bars on the weekly time frame under the resistance at 1.3560. I think that unless we see the pair break out above that level the move to the downside remains quite probable.
I see very strong bearish sentiment in both mid and long term timeframes. I think holding a short position for a while would be beneficial. Especially as now the markets seem calm with no major news coming until tomorrow.
Trading is like football - if you don't practice you can't win the game!
The production cut have given extra leg to Canadian Dollar but the pair has failed to cheer up the oil rally due to strengthened Dollar. Technically, a break above 1.3329 would lead the pair to high 1.3450 while the immediate support level can be seen at 1.325 whereas major support is at 1.3115.
The Loonie kept on back- pedaling following the surge in oil prices due to OPEC production cut. Black gold kept on driving the currency pair since the previous week. On technical ground ,break above 1.3330 would lead to next resistance which is at 1.3405 while the immediate support level can be seen at 1.3249 whereas major support is at 1.3115.
The pair seems to by quite bearish of the past couple of weeks. I see contradictory signals from MACD, Momentum and Stochastic indicators on H4 chart, though, so I would avoid trading it for now as it may reverse back up in the next 24 hours.
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