General overview: USD/CAD failed to extend the previous day’s corrective pullback despite recent bounce off intraday low. Oil follows geopolitical news, upbeat US data and stimulus hopes to stay mildly bid. Last week’s hawkish BoC policy outlook continued weighing heavily on USD/CAD. Mixed US Durable Goods Orders failed to impress the USD bulls or lend support. Rebounding oil prices underpinned the loonie and contributed to the selling bias. The pair witnessed some heavy selling on the first day of a new trading week and dived to the lowest level since March 18. This marked the second consecutive day of a negative move – also the third in the previous four – and was sponsored by a combination of factors.
Technical overview: From the technical point of view for that we can say that market is providing selling signals to traders. On the hourly chart market is creating potential rounding top and leads towards the selling side in the market. On the daily chart the market is creating downside strong trend the more downfall can be expected. The positional traders can take their trade towards the sell side in the market. The pair is getting support from the 200 SMA and 50 EMA lines for more bearish confirmation in the market. The market selling level can be reach till 1.2379 level. The indicator is also moving towards the bearish side in the market as the RSI and MACD is also leads towards the bearish side in the market. The support level is 1.2353 followed by 1.2303 and resistance level will be 1.2453 followed by 1.2503
Trade idea: Our traders will sit towards sell side below 1.2404 target will be 1.2344 -1.2304 stop loss will be 1.2464.
