UsdCad Technical Analysis 01/02/2017

The Greenback rather traded lower ahead of today’s FOMC’s announcement. It is the first meeting this year. At the previous meeting the Fed’s forecast showed that it was looking at hiking rates 3 times this year. On the other hand we have the US President Donald Trump calling for the devaluation of the dollar which supports the recent negative dollar sentiment. With Yellen not speaking later on, any hawkish FOMC statement could drive the greenback up, though an unchanged statement and hints of greater concern could continue to support the current negative sentiment market participants have.

Apart from today’s FOMC’s monetary announcement, we also have top tier data coming from the US.
A predicted result(>50), which is also better than the previous, will signal bullishness in the dollar.
– ADP Employment change

UsdCad Daily Chart

Price opened at support between the monthly pivot and MM2 at the beginning of the month. Having broken through the downside of the upward channel it was trading through, and also with the market action moving averages showing a bearish market, it is now trading within a descending asymmetrical triangle. An immediate level of resistance is seen at the monthly pivot with also the psych

UsdCad H4 Chart

Price is currently at resistance/role reversal. with the 21/55 moving averages being bearish and a break above the current resistance level, the 21 moving average would go on to act as dynamic resistance at WM2 and the 61.8 fib level. Also bears will be looking to sell off the 21, the lower high.

UsdCad H1 Chart

Price broke through what was then a key level of support at 1.309. This level coincides with WM2 from the H4 chart and the 61.8 fib level. a retest at the role reversal is imminent which is where bears will be looking to sell.

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