USD/CAD: Is loonie ready for another leg to the downside?
Good Afternoon Traders and welcome back to EverythingFX!
The US Dollar is currently trading at 1.33050 against the Canadian Dollar during today's London session.
DOLLAR CAD has been on a run since we printed a new low in and around 1.30000 and currently up 300 PIPs from the lows and we are slowly approaching our next level of resistance at 1.34000.
As displayed in the image, we have been forming a retracement for the past 5 trading weeks where I do see us potentially slowing down in and around the current trading price, give or take a 50 PIP range.
Looking at a daily timeframe I know this market tends to swing fairly nicely so I have measured the primary swing from the highs at 1.36500 all the way down to the lows our support of 1.31000 which happens to be the same swing length of the move we had from 1.35000 down to 1.3000's. Evidently showing us that the average swing could be around 500-600 PIPs in length. So upon a rejection from the highs in and around 1.33000-1.34000, I am anticipating a new leg swing to the downside which lines up nicely with our level of support at 1.28000 over the coming weeks/months.
Fundamentally we have some important data out in the States today with eyes on Retail sales, Industrial and Manufacturing Production which will set the tone for the dollar in the coming days and weeks. Do stay tuned to our market news section and our social media on updates on these news events and political announcements.