Here we are again a lot of currency pairs are back where they started the month after a history lesson about the past failures with little forward guidance from Janet Yellen at Jackson Hole and potentially a new vacancy in February when her term is up at the FED after she defended the Dodd Frank regulation following the financial crisis which Trump is opposed and committed to repealing. It is hard to be a dollar bull short term with uncertainty about the succession of FED, balance sheet tapering and potential interest rate increase not until December.

I’m looking at the USDCAD which is presently close at support last week’s pivots WM1 and MM2 1.2460 as well as oversold on higher time frames daily and 4H. As a result, I think we need to wait for a pullback to 1.2500- 1.2520. Oil price is somewhat neutral or rather capped between $45-50 dependent on weekly DOE inventories Wednesdays could fluctuate. If we get a break of 1.2415 – WS2 heavy support could see 1.2280 – WS3/ MS1. How do you feel about 100% retracement from beginning of the month?

Bias – Bearish 4H
Market bearish 21 below 55 EMA
Price is bearish below 8 EMA

Targets
T1 – 1.2430
T2 – 1.2350 138.2% WM0
T3 – 1.2280 161.8% WS3/MS1

USDCAD_1D

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