Stop loss 1.3218 Entry level 1.3106 First Target at 1.2950 Next targets to test at 1.2854, 1.2777 Technical Analysis USD/CAD deeper decline is still
Stop loss 1.3218
Entry level 1.3106
First Target at 1.2950
Next targets to test at 1.2854, 1.2777
Weekly Technical Outlook: USD/CAD ; Market Forecasts for August 17th – August 21st
Technical Analysis
USD/CAD deeper decline is still expected as long as 1.3100 resistances hold. At this point, such decline is viewed as a correction to the market for USD/CAD pair. Thus, we’d expect strong resistance around long term at 1.3100 to contain downside. Meanwhile above 1.3218 will turn bias back to the upside.
In the bigger picture, current development suggests that a medium term downside is already taken place and a deeper correction could be seen possibly at 1.2854 levels. There is a clear indication of trend reversal with back to back two bar rejection which closed below the resistance, suggesting a shift in the momentum. Focus will be on the structure on the current fall from current levels. We expect strong resistance at current levels to break at 1.3106 confirming a bearish move on pair. The fall from these levels should test 1.2950 and would extend to 1.2854 and later to 1.2777 minor support areas. Meanwhile, above 1.3218 should extend the upward bias which shall dampen our short term view. Outlook remains bearish for week.
Economic
NAHB Housing Market Index, Housing starts, Building Permits