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Market View

USDCAD Weekly Technical Outlook

Tuesday, January 3, 2017 5:06 PM GMT

This Week’s hot news events that will move the pair: 

Tuesday: RBC Manufacturing PMI (Dec) Previous: 51.5

Friday:    Unemployment Rate (Dec) Previous: 6.8%, Forecast: 6.9%

    Ivey Purchasing Managers Index (Dec) Previous: 56.5

The trading bias remains positive in the weekly chart. The pair stopped below the 50% Fibonacci level while remains above 21 EMA (red) and 55 EMA (green) indicating the bullish view. The blue trendline acts as future support for the current trend. Now the pair is in consolidation.


Stepping lower on Daily timeframe, the pair stopped on multiple supports like 21 EMA and 38% Fibonacci level. While 21 EMA remains above 55 EMA indicating the midterm bullish view. Next important supports could be the 55 EMA and 61.8% Fibonacci level (1.3278). 


On the other hand, the bias changes on hourly chart. The trend is bearish as price is below 200 SMA (blue) and fast EMAs performed bearish crossovers. Using the Andrew’s pitchfork, you will see that price follows it really well. Possible pullback and bearish retest on 200 SMA will may offer selling opportunities. The bias may reverse when price reclaim 200 SMA and 21 EMA cross above 55 EMA.


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