USD/CAD Violates Triangle – CB Consumer Confidence Up Next - Forex News by FX Leaders

USD/CAD Violates Triangle – CB Consumer Confidence Up Next

Posted Tuesday, July 30, 2019 by
Arslan Butt • 1 min read

Recalling FX Leaders’ Daily Brief for July 30, the second most important economic event is the CB Consumer Confidence data from the United States. It’s expected to surge from 121.5 to 125.2, giving us a reason to support bullish Dollar during the New York session.

Well before the data comes out, we have a trade setup in USD/CAD that I would like to share with you. Looking at the 2 hourly timeframes, USD/CAD has broken above 1.3150 resistance area and closed several candles outside the range. It was a bullish triangle pattern which was keeping USD/CAD bullish.

At the moment, USD/CAD is heading lower to test the horizontal support level of around 1.3150. That’s the area where 50 periods moving average may extend support to the Loonie.

Thing is, leading indicator RSI is still holding into the bullish zone and may drive further buying in the pair.

USD/CAD – Trading Levels

Support Resistance
1.3152 1.319
1.3136 1.3214
1.3098 1.3253
Key Trading Level: 1.3175

Therefore, better than expected CB consumer confidence may drive downward moves until 1.3150 and the violation of this may trigger sell-off until 1.3130. Whereas, figures over 125 may drive a sharp upward trend above 1.3160 to lead USD/CAD prices towards 1.3200.

Good luck!

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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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