Weekly view: After seeing price action loiter within supply at 1.3295-1.3017 for the past two weeks, the zone suffered a slight break last week. As such, a continuation move up toward the resistance boundary seen at 1.3381 is now something traders need to be prepared for this week.
Daily view: Looking down to the daily chart, the unit is also seen trading within a supply zone drawn from 1.3405-1.3259. On top of this, the loonie is now lurking within shouting distance of a daily convergence point made up of: a 38.2% Fib resistance level at 1.3315 (green line), the weekly resistance level mentioned above at 1.3381, a channel resistance taken from the high 1.3241 and an AB=CD completion point around the 1.3376ish range.
H4 view: A quick recap of Friday’s trading on the H4 chart shows that the USD/CAD sold off following a better than expected Canadian job’s report. However, it was not too long after this did we see price catch a bid from the 1.32 handle and push on up to the 1.33 neighborhood into the close.
Direction for the week: With weekly action trading around supply and resistance, as well as daily price trading within a heavily confluent supply zone, we feel the more likely direction this week is south.
Direction for today: Due to the fact that US and Canadian banks are closed today, liquidity may be thin. Therefore, we will not be expecting much from this market today.
Our suggestions: Despite both countries being on vacation today, we are very interested in shorting from around 1.3315ish region. Not only does this area boast a truckload of daily/weekly confluence (see above) and a H4 AB=CD bearish completion point (1.3328), it also allows one to place their stops above the current daily supply! As a result, our team has a pending sell order set at 1.3315 and a stop placed above at 1.3407.