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Market View

A potential setup for USDCAD

Friday, April 19, 2019 12:50 PM GMT

Yesterday, US Markit Manufacturing PMI came in at 52.4, unchanged from the previous month's near two-year low and below market expectations of 52.8. On the other side, Canadian Retail Sales increase to 0.8%, unrevised from the market’s expectations of 0.4% (Previous: -0.4%).

Reviewing the daily technical aspect, USDCAD hit yesterday the trendline (T1) and closed at the 38.2% Fibonacci level. Currently, the pair is testing the Pivot Point to the downside, while Stochastics is respecting the trendline (T2). Going to more technicals, RSI is moving within the 50 to 60 zone, which is supposed to act as a resistance zone during a downtrend.


Overall, the setup indicates a potential reversal towards the 50.0% Fibonacci support level offering a potential bearish opportunity. On the other hand, if the price breaks out above the trendline (T1), then Bulls may boost the price higher towards the Daily (R2).

Major news such as US Building Permits (Previous: 1.291M, Forecast: 1.230M) and US Housing Starts (Previous: 1.162M, Forecast: 1.230M) are expected to be released, so Traders should be cautious because it is expected high volatility during the session.


The views expressed do not constitute investment or any other advice/recommendation/suggestion and are subject to change.

Reliance upon information in this material is at the sole discretion of the reader.

Opinions expressed in the report do not represent the opinion of Zulutrade and do not constitute an offer or invitation to anyone to invest or trade.

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