USD/CAD Caught in Range Under 1.4075
- The USD/CAD opens Fridays trading in a 97-pip range
- Range resistance is found at 1.4075
- Bearish breakouts begin under 1.3930
(Created using Marketscope 2.0 Charts)
The USD/CAD has opened Friday trading by bouncing from range support at 1.3978. From this point, prices have risen to the high of the day, which currently stands at 1.4087. It should be noted that the USD/CAD is now trading back below the R3 Camarilla Pivot point at 1.4075. If prices remains inside of this resistance value it opens up price action to potentially retest support after traversing today’s 97-pip range.
Today’s range would be considered invalidated in the event that prices breakout either above the R4 or below the S4 pivot point, which are both displayed in the graph above. The R4 pivot is found at a price of 1.4123. A move beyond this point would be significant as it would be the first bullish breakout for the USD/CAD in the last four trading periods. Conversely, a bearish breakout below the S4 pivot at 1.3930 would suggest a resumption of the pair’s current short-term downtrend. To date the USD/CAD has declined as much as 742 pips off of the 2016 high which resides at 1.4688
SSI (Speculative Sentiment Index) for the USD/CAD is currently reading at -1.44. While this value is negative, it should be noted that SSI continues to normalize from a reading of -1.9 last week. A flip in sentiment to net long next week would add validity to the markets current short-term downtrend. Conversely, if sentiment moves back to an extreme -2 or greater, it would suggest a potential resumption of the pair’s primary uptrend.
To Receive Walkers’ analysis directly via email, please SIGN UP HERE
See Walker’s most recent articles at his Bio Page.
Do you know the biggest mistake traders make? More importantly, do you know how to overcome the biggest mistake? Read page 8 of the Traits of Successful Traders Guideto find out [free registration required].
Contact and Follow Walker on Twitter @WEnglandFX.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.