Week 40 in 2016 (USD/CAD)

Author: Hanlie Barnard, participant of the Analyst Contest

Although it is not 40 days till something, it is week 40 of this year and that could be a good week for the markets. USD is in a huge build-up to the election in America.

There is bigger news for the USD than there is for CAD. Thursday will be the crude oil inventories as usual. That could have an influence on the CAD if it is good news for oil. In my point of view the news to keep in mind is the speech of Yellen on Friday just before the markets close.

On the daily chart of the USD/CAD prices stay under the 200 Bollinger band from 14/03/2016 till Friday 08/03/2016. The candle closes above the 200 at 1.32967.

Pivot point: 1.32654

1Res: 1.33445 1 Sup: 1.32174

2Res: 1.33925 2 Sup: 1.31383

3Res: 1.35196 3 Sup: 1.30112

The first Fibonacci to the upside is the 0.5 at 1.35688 it could be a big resistance for the currency. If that is broken in the daily the next is the 0.618 Fibonacci at 1.38301.

To the downside is the 1.3000; a definite price to keep in mind. That is also the 0.236 Fibonacci.

For me this is a very interesting currency to trade with. Because of the influence of oil on the CAD, or CAD on oil. To be more specific: on WTI. The last couple of days last week there was times when it seemed as if USD and WTI were running together. But that was because of OPEC and their news.

Maybe we can see the USD/CAD visiting 2002/01 monthly high of 1.61960 in the days before the end of 2016. If not maybe it will go short to 2007/11/1 low of 0.90000.

Long or short this is an exciting currency pair to watch with everything going on in USA.

May this week be a good week for every trader, bull or bear.

Source:: Week 40 in 2016 (USD/CAD)

About the Author
Alpari was founded in 1998 and is one of the world’s leading Forex brokers, offering clients a full package of the most modern financial instruments and technological solutions for online trading and investment. According to data from Finance Magnates, Alpari has been one of the largest Forex brokers in the world for a number of years. The trading turnover of the Alpari companies in 2014 was 2.5 trillion USD. Today Alpari is the world’s largest MetaTrader 4 Forex broker. The first half of 2015 saw company branches offering their services to over one million clients from over 150 countries in the world. Alpari clients have access to over 50 currency pairs and an extensive range of other instruments. The company offers the use of three trading platforms for computer and mobile applications for use with iOS and Android. Alpari is a member of international organizations such as The Financial Commission (Hong Kong) and CRFIN (Russia). Bonuses: the Alpari Bonus Program was launched in 2014 and allows clients to independently change their conditions for working on the financial market: reduce commission, save money on swaps, improve conversion rates and much more. Read More about Alpari HERE or you can visit their website direct by CLICKING HERE..

Related Posts

Leave a Reply

*