ICM Technical Analysis : USD/CAD 4 March 2020

ICM Technical Analysis : USDCAD – 4 March 2020

USD/CAD found itself at lows of 1.3319 after the Federal Reserve rattled markets, cutting interest rates in an unscheduled meeting in early US hours Tuesday. Support at 1.3321, a previous Quasimodo resistance level, entered the mix and capped downside. 1.34 lies up ahead, whereas failure off 1.3321 could lead to 1.33 nudging into view.

The current H4 support was bolstered by daily support noted at 1.3327, positioned just ahead of another layer of support drawn from 1.3271. Upside on this scale exhibits scope to press as far north as resistance at 1.3434, which represents the 2017 yearly opening level on the weekly timeframe. Interestingly on the weekly timeframe, we also have price marginally trading south of trend line resistance, pencilled in from the high 1.3664. As for support on the weekly timeframe, a local trend line resistance-turned support, taken from the high 1.3382, may enter view, with a break of here possibly clearing the runway to support at 1.3059.

Areas of consideration:

H4 support at 1.3321 was a noted support in previous analysis, as was the 1.33 handle.

A retest at the underside of 1.34 may be of interest to some in this market, given weekly price fading notable resistances. The threat of further buying from daily support at 1.3327, however, could discourage selling. Conservative sellers, in this case, may opt to wait and see if additional candlestick confirmation is seen before committing.

Disclaimer: The information contained in this material is intended for general advice only.