ZuluTrade Blog

Market View

USDCAD is still consolidating below 61.8%

Thursday, May 3, 2018 8:50 AM GMT

Today’s agenda is rich with news as traders are expecting later today US Initial Jobless Claims (Apr 27) (Previous: 209K, Forecast: 225K), US Nonfarm Productivity (Q1) (Previous: 0.0%, Forecast: 0.9%) and US Trade Balance (Mar) (Previous: $-57.6B, Forecast: $-50.0B). In addition, there are Canadian new like the International Merchandise Trade (Mar) (Previous: $-2.69B, Forecast: $-2.24B) which means that markets will be very volatile during the US session.

Regarding the technical view of Loonie, the pair is consolidating around the range of 1.28 to 1.29 for the last 8 days. It is still not able to break out the 61.8% Fibonacci retracement level which proved to be a major resistance.


Heading to the hourly timeframe, the pair remains weak during London session and it is heading to the lower side of the consolidation. Therefore, there are two potential trading scenarios for traders. The first scenario says to continue trading the range meaning a buy setup near to 1.28 area while the second says to wait for a valid breakout of the range’s boundaries. Due to the size of the consolidation, any potential breakout can be aggressive.


(EMA = Exponential Moving Average, SMA = Simple Moving Average, 5EMA = Blue, 21EMA = White, 200SMA = Yellow)

Always review your own analysis. If there is a confluence between the current study and your own strategy, then you may have even better trading setups.


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