My bias is bullish. The market is bullish, although the speed of the market is slow. The angle of the bullish trend is fairly flat and there is little separation between the 200, 55 and 21 EMA. The 21 is still above the 55 though, and the 55 is above the 200.

Major news events coming out this week for this pair:

CAD
BoC Business Outlook Survey – Monday
New Housing Price Index (MoM) (Nov) – Thursday

USD
JOLTs Job Openings (Nov) – Tuesday
Crude Oil Inventories – Wednesday
Core Retail Sales (MoM) (Dec) – Friday
PPI (MoM) (Dec) – Friday
Retail Sales (MoM) (Dec) – Friday

Price closed right on top of the 200 EMA on the daily chart, and we saw a bearish 5/8 cross earlier in the month. Price however has reached the trend line it has been respecting since August 2016, with the stochastic entering the oversold area.

Price ended the past week having reached and exceeded the weekly target of WS2 and formed a double bottom.

The double bottom is more clearer on the H1 chart, however price failed to form a higher high as further confirmation of the reversal of trend. There is however a bullish convergence between price and the stochastic as drawn with the blue solid lines on the H1 chart. I am looking to go long on this pair at the retest of the support area, thus forming a triple bottom on H1. Alternatively, after price breaks and retests the resistance area on H4.

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