USD/CAD plummeted today and dropped
to lowest level since late September 2017. The pair was set on huge selling
pressure, with over 150 pips down for the day, after the disappointing NFP data
form US, while in Canada the unemployment rate dropped to 5.7%.
Technically speaking, the
short term outlook for the pair remain neutral to bearish. On the four hour
time frame the price is moving well below its bearish moving averages. RSI and
stochastic are located within extreme oversold areas, with the first starting
to retreat and the second has lost directional strength. As seen on the same
chart, after marking the multi months low at 1.2351 the pair found support at
the 61.8% Fibo of latest September to November bullish run.This is very
significant level and in case of breaking it to below, the pair will be poised
to extend its decline towards the psychological 1.2300 handle. During the
upcoming sessions we may expect a corrective phase, before USD/CAD takes new
direction.
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