The Loonie is mixed despite the better than expected employment report on last Friday in what is likely a case of profit-taking. Canada added 35.8K jobs vs. an expectation of 30K, though the unemployment rte ticked higher to 8.1% DUE TO PROFIT TAKING
The central bank’s increase in interest rates last week may well not be the last should such a trend continue. The dollar came off its peak to trade at 96.83 cents an hour after the release as dealers digested the report.
Last weeks rate hike (3rd of the year) and the jump in the PMI, has extended USDCAD selloff from last weeks 1.0570s highs to 1.0280s. 1.0250/1.0100 seen as the next targets in focus.
TECHNICAL ANALYSIS
H4 chart with trendline and EW
Daily Chart with Ichimoku
On the H4 Chart with Trend line and EW, We do note that it has completed its a,b,c wave descend from the high A near 1.0566. Now this currency pair is testing the support near 1.0286 (its recent low). The lower Trend line is near 1.0200. Successful breaking the lower trendline shall retest its parity near term.
On the upside, 1.0400 is the Resistance 2, near the upper trendline. Breaching both of them shall see this pair retesting 1.0480(50% Fibo) , and 1.0530(38.2% Fibo)
On the Daily Chart with Ichimoku, 1.0323 is the Ichimoku Cloud Bottom support, also near the 61.8% Fibo, and support 3 is near 1.0250. Breaching these levels shall send this currency pair toward Parity.
On the upside, successful breaking the Ichimoku Cloud top resistance near 1.0400 (also the 50% Fibo), and the 1.0542 (23.6% Fibo) will confirm its Bullish reversal.
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