USD/CAD Finds Support At 1.2800, Fibonacci Short In Sight
Monday’s U.S. session is going to be a tough act to follow. Equities, commodities, and forex traded with heavy volumes, with many making directional moves. When the dust cleared, we witnessed WTI crude oil close above $75.00, whipsaw action in the U.S. indices, and a bullish USD. One of the most active currency pairs was the USD/CAD, opening GAP down and continuing the bearish sentiment.
Today may be a bit calmer in terms of action. Participation will remain strong as we are into the fall trading season, but there will be no news like USMCA to drive participation. A mild economic calendar is the order of the day. The only potential market mover scheduled is the U.S. FED Chair Powell speech at 12:45 PM EST.
USD/CAD Technicals
The USD/CAD was the story of the Sunday/Monday forex session. Trade opened the week GAP down, sending forex players to their screens en masse.
+2018_10_02.png)
Here are the key levels to watch for the remainder of the U.S. session:
- Resistance(1): 38% Current Wave, 1.2896
- Support(1): Psyche Level, 1.2800
- GAP, 1.2847-1.2904
Bottom Line: For the remainder of the week, I will have sell orders queued up from beneath the 38% retracement at 1.2894. Using an initial stop at 1.2926, this trade produces 32 pips on a rotation back toward the bear.
GAPs in pricing have a tendency to be tested and filled. The USD/CAD daily chart has a nice one on the weekly open, with a range from 1.2847 to 1.2904. In the event this area is tested, a sell from the daily 38% current wave retracement is a good way to play rotation from the top of the GAP.
ABOUT THE AUTHOR
See More
Sidebar rates
Add 3442
Related Posts
SaveAdd 3440
Join 350 000+ traders receiving Free Trading Signals
Alerts
Rates
Calendar
Signals