1.3500 Stands Tall Again In The USD/CAD

Posted Friday, May 17, 2019 by
Shain Vernier • 1 min read

Today’s forex session has been a wild one for the USD/CAD. Rates have once again tested the waters above 1.3500 before retracing. Rollover in the WTI crude oil futures contract, as well as a delayed reaction from BoC Chairman Poloz’s Thursday presser, have prompted the market turbulence.

As of this writing (about 12:30 PM EST), the Loonie is hanging around the 1.3475 value area. In the event we see weekly settlement beneath the session high of 1.3513, a Triple Top formation will set up on the daily chart.

USD/CAD Puts In An Active 24 Hours

The early Thursday U.S. session brought a limited trading range and muted action to the Loonie. Even as Poloz stating the BoC’s views toward the Canadian economy, the USD/CAD showed little interest. Since then, we have seen the pair’s weekly range extended to both the top and bottom.

USD/CAD, Daily Chart
USD/CAD, Daily Chart

Here are the levels to watch for the remainder of today’s session:

  • Resistance(1): Psyche Level, 1.3500
  • Support(1): Daily SMA, 1.3454
  • Support(2): Bollinger MP, 1.3435

Overview: As of yet, the Loonie hasn’t been able to take out the 78% Weekly Retracement at 1.3532. However, the pending Triple Top formation has set up in the vicinity of this level. All in all, 1.3500-1.3532 is a major area of resistance ― if it finally gives way, look for a test of 2018’s high (1.3660) to develop as soon as WTI crude fades below $60.00.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
Related Articles
USD/CAD continues to slide lower, although it stalled to the bottom of the range earlier, after the dive on the 25 bps hike by the BOC
1 day ago
Crude Oil has been bearish for more than a year, but this week we saw a decent reversal higher on higher Caixin manufacturing
6 days ago
0 0 vote
Article Rating
Notify of
Inline Feedbacks
View all comments