Quiet Markets To Start The Trading Week-Key Levels For The USD/CAD

Monday is upon us once again, with markets getting set for another week of active trading. Today’s economic calendar for the U.S. session is very thin, but that is poised to change during the overnight. Key upcoming releases for the Eurozone and the U.K. will headline what is sure to be an active Tuesday.

U.S. equities have opened relatively muted, with the DJIA off moderately and the S&P 500 near flat. With the Congressional battle over the Trump tax plan ready to take center stage, I am expecting to see a considerable spike in volatility facing the indices throughout the fourth quarter of 2017.

USD/CAD Technical Outlook

Last Friday I outlined a few trade ideas facing the USD/CAD. Currently, price is within key areas on the daily timeframe, between robust support and resistance levels.

USD/CAD, Daily Chart

Here are the important levels for today’s action:

• Resistance(1): 38% of yearly range, 1.2722

• Resistance(2): 38% of October’s range, 1.2731

• Support(1): 20 Day EMA, 1.2695

• Support(2): Bollinger MP and Daily SMA, 1.2682

• Support(3): Last week’s low, 1.2665

Overview: Price for the USD/CAD is in a bullish formation on the 240-minute chart and has broken out from Friday’s range, which formed a Doji candlestick. As of now, the bulls are in control, driving price to our first resistance level.

With the pending Bollinger MP/Daily SMA crossover, this market looks to be changing direction. If you are going to take shorts from the resistance levels, keep them tight. My bias has gone to the long side of things, and we may get a shot at a premium long entry on any pullback to our Daily SMA later in the week.

Until then, trade smart and stay tuned to FX Leaders for trade ideas, analysis, and signals!