What’s next on the USDCAD at the 1.3311 zone?
The USDCAD pair has been, since the 28th of October 2016, oscillating within a bearish formation from 1.3432 to 1.3358. Will the sellers resume leading the price?
Today’s major pivot point area is the 1.3311 level where the sellers will likely take their chances to resume leading the price to their favour.
Probable Scenario
The latest stabilization of the pair close to the 1.3311 level is a good indication that the sellers may exert greater pressures to force the price to the downside.
The Stochastic oscillator has also confirmed that the price could aggressively drop at the 35 zone.
In the scenario where the pair decelerates, the price could fall to 1.3237.
Alternative Scenario
Alternatively, in the event where the sellers are not able to hold the price close to the 1.3358 area, and the buyers place greater pressures, the pair could rise back to 1.3432.
Today’s Major Announcements
- The U.S.’s Continuing Jobless Claims (Oct 21), the Initial Jobless Claims (Oct 28), the Markit PMI Composite (Oct), the Markit Services PMI (Oct), the ISM Non-Manufacturing PMI (Oct), and the Factory Orders (MoM) (Sep) announcements will likely a have medium impact on the U.S. dollar
- There are no any releases that could have an impact on the Canadian dollar
Synopsis
· Probable trend (Bearish): 1.3311
· Bearish take profit target: 1.3237
· Stop loss target: 1.3358
· Alternative trend (Bullish): 1.3358
· Bullish take profit target: 1.3432
