Type:
Bearish Momentum
Key Levels:
Resistance: 0.77520
Pivot: 0.77310
Support: 0.76480
Preferred Case:
On the H1, with price moving below the ichimoku indicator, we have a bearish bias that price will drop from our pivot at 0.77310 in line with the swing high resistance to the 1st support at 0.76480 in line with the 161.80% fibonacci extension , 100% fibonacci projection and swing low support.
Alternative Scenario:
Alternatively, price may break the pivot structure and rise to the 1st resistance at 0.77520 in line with the overlap resistance and 78.6% fibonacci retracement .
Fundamentals:
The prospect of a more aggressive Fed saw further gains in the USD/CAD pair. At the same time, an oversold CAD is deemed from the equally hawkish BoC and firm oil prices resulting in mixed to weak bullish view for the Canadian Dollar Future.
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Desmond Leong runs an award-winning research firm (The Technical Analyst finalists 2018/19/20 for Best FX and Equity Research) advising banks, brokers and hedge funds. Backed by a team of CFA, CMT, CFTe accredited traders, he takes on the market daily using a combination of technical and fundamental analysis.