Big news has come out this week already on both currencies, and there is more to come tomorrow on them. This morning, the BOC (Bank of Canada) announced that they would leave interest rates unchanged at 0.25%, the same as last report. Yesterday, President Trump spoke about how him and his staff are working to reopen schools on time, grow job numbers and help fix the economy during a pandemic. Starting this morning, UC came down hard and reached the 200 Day Moving Average. This article will be more brief than others as we try to get our ideas out there in real time so the information is still relevant, especially on lower time frames.
Here, we're looking at UC on the daily chart. Key resistance is shown around 1.38757, while key support lies on the 200 DMA and at 1.33414. Prices also broke out of the wedge drawn which could signify more swings to the downside, but support from the moving average could help prices sustain upwards momentum. Right now, we're looking at long positions on the moving average as well as support in the 1.33410s. Relative Strength indicates that the price is under 50, so we could be entering an oversold level soon.
USD/CAD on the 4H chart. 14-hour RSI definitely showing signs of being oversold, but resistance lies at 1.35366. A break in this level would be bullish for the pair, and we're thinking that prices might test that level and pullback before an actual break. So, there could be some short interest there on the 4H.
15 min Chart
UC on the 15 min chart. More resistance lies ahead at 1.35590, but it looks like the sellers' rush is beginning to fade. We're expecting to see some swing to the upside before the pair catches short pressure on the 15 min and 4H chart levels. If prices can make it up through resistance, we may look to buy again on pullbacks. Bollinger bands shrunk, showing signs lesser volatility to the downtrend, and short candles making a hammer formation looks like buyers are trying to step in.
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