The USD/CAD Starts Week Trading in Range
- The USD/CAD Starts the Week in a 99 Pip Range
- Bearish Breakouts Begin Under 1.2911
- SSI Reads Positive at +1.75
(Created using Marketscope 2.0 Charts)
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The USD/CAD has started this week’s trading inside of a 99-pip range. Prices action has recently moved back below range resistance, which is found at the R3 Camarilla pivot at a price of 1.3059. If the USD/CAD remains below this point of resistance, it opens up prices to move lower and retest values of support. Today’s first key value of support is found at the S3 pivot at 1.2960. In the event of further declines, bearish breakouts begin today beneath the S4 pivot at 1.2911. In this scenario, traders may extrapolate 1X todays range to place preliminary breakout targets at 1.2812.
In the event of a bullish reversal, traders will look for prices to trade back above the R3 pivot point mentioned above. In this scenario, it opens up the USD/CAD to breakout to a new weekly high above the R4 pivot at 1.3108. A move to this point would be significant as it would be the second consecutive day with an attempted bullish breakout for the pair. Traders may again extrapolate 1X todays range to place initial bullish targets at 1.3207.
Find out the latest positioning totals with DailyFX’s sentiment page
SSI (Speculative Sentiment Index) for the USD/CAD currently reads +1.75. When taken as a contrarian signal, this positive number is normally interpreted as a bearish signal. If prices decline further, traders should look for SSI to continue to move towards more positive extremes of +2.0 or higher. Alternatively, in the event of a bullish reversal, traders should look for SSI to decline towards more neutral values. .
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