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.
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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.
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