Fan Yang
All posts from Fan Yang
Fan Yang in Fan Yang,

USD/CAD Struggling to Extend North of 1.10

USD/CAD is at the crossroad. In the 4H chart, we can say it is consolidating after a bullish push, but note that the bullish push could just be a bullish correction against the downswing from the 2014-high at 1.1278 to April low at 1.0858.

In the daily chart below you can see that price action in 2014 has so far been bullish turning neutral.

However, the price action in the 4H chart above shows a tepid rally that is being held at 1.1053 at the moment, and may see resistance again if it drifts up to the 1.1075-80 area. 

I think there is still a chance the bullish mode returns, a failed bearish attempt might be needed to add confidence to USD/CAD - bulls.

Bearish attempt:
The daily stochastic is overbought and suggests a bearish attempt. In the very short-term, this bearish attempt has the 1.0940-50 support area in sight, before the 1.0855-60 area.

A break below 1.0850 should target a rising trendline that comes up from September 2013. 

However, a failed attempt to reach the 1.0858 low, especially if there is support above 1.0940, can show a return to the bullish mode that USD/CAD has been in since Sept. 2012.