{"id":55801,"date":"2014-08-11T11:47:05","date_gmt":"2014-08-11T15:47:05","guid":{"rendered":"http:\/\/countingpips.com\/?p=55801"},"modified":"2014-08-11T12:46:02","modified_gmt":"2014-08-11T16:46:02","slug":"usdcad-uptrend-replaced-with-a-range","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2014\/08\/usdcad-uptrend-replaced-with-a-range\/","title":{"rendered":"USD\/CAD: Uptrend Replaced With a Range"},"content":{"rendered":"<div id=\"inves-2916371582\" class=\"inves-below-title-posts inves-entity-placement\"><div id =\"posts_date_custom\"><div align=\"left\">August 11, 2014<\/div><hr style=\"border: none; border-bottom: 3px solid black;\">\r\n<\/div><\/div><p>Technical Sentiment: <strong>Neutral<\/strong><\/p>\n<p><strong>Key Takeaways<\/strong><\/p>\n<ul>\n<li>Housing Starts in Canada were up 1k, to 200k vs. forecast 194K;<\/li>\n<li>Double Top chart pattern stirs a small sell-off with larger potential;<\/li>\n<li>Uptrend at risk of reversal on a break below 1.0902.<\/li>\n<\/ul>\n<p><em>An overextended USD rally is showing increasing signs of exhaustion that may lead to a larger correction in the coming days and weeks.<\/em><\/p>\n<p><strong>Technical Analysis<\/strong><\/p>\n<p><a href=\"http:\/\/capitaltrustmarkets.com\/wp-content\/uploads\/2014\/08\/USDCAD-11th-August.png\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-5536\" src=\"http:\/\/capitaltrustmarkets.com\/wp-content\/uploads\/2014\/08\/USDCAD-11th-August.png\" alt=\"USDCAD 11th August\" width=\"700\" height=\"344\" \/><\/a><\/p>\n<p style=\"text-align: justify;\">USD\/CAD formed a perfect range was formed last week, with price boxed in tightly between the support at 1.0902 and the resistance at 1.0983\/85. Each level now has two tests and subsequent rejections, making the next touch a very likely break-out opportunity.<\/p>\n<p style=\"text-align: justify;\">The double top chart pattern, more than anything else, indicates a major weakness within the 5-week uptrend. Stochastic is located in overbought territory on the Daily chart, adding value to this view since it suggests a temporary top should form in this area in order to allow a bearish correction.<\/p><div id=\"inves-3119620362\" class=\"inves-in-content inves-entity-placement\"><hr style=\"border: 1px solid #ddd;\">\r\n<div id=\"inpost_ads_header\">\r\n<p style=\"font-size:10px; float:left; color:#666;\">Free Reports:<\/p><\/div>\r\n<div id=\"inpost_ads\"> \r\n<p style=\"font-size:15px; float:left;\"><a href=\"https:\/\/goo.gl\/1ApBOV\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/investmacro.com\/wp-content\/uploads\/2018\/06\/graph_techs_PD.png\" align=\"left\" width=\"80\"  height=\"55\"\/><\/a>\r\n\t     <a href=\"https:\/\/goo.gl\/1ApBOV\"><b><u>Get Our Free Metatrader 4 Indicators<\/u><\/b><\/a> - Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter<\/p><br><br>\r\n<br>\r\n<br>\r\n<p style=\"font-size:15px; float:left;\"><a href=\"https:\/\/goo.gl\/f3RrHX\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/investmacro.com\/wp-content\/uploads\/2019\/01\/cot_pie_80.png\" align=\"left\" width=\"80\"  height=\"55\"\/><\/a>\r\n\t    <a href=\"https:\/\/goo.gl\/f3RrHX\"><b><u>Get our Weekly Commitment of Traders Reports<\/u><\/b><\/a> - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.<\/p><br><br>\r\n<\/div>\r\n<hr style=\"border: 1px solid #ddd;\">\r\n<br><\/div>\n<p style=\"text-align: justify;\">While price remains stuck between 1.0902 and 1.0983 it is important to first observe how it will react around 1.0930 (50 Simple Moving Average on the 4H time frame). USD\/CAD has shown respect for this SMA line in the past, as a consequence a break or bounce should indicate the overall direction before the range itself breaks.<\/p>\n<p style=\"text-align: justify;\">A bearish break below 1.0902 will invalidate USD\/CAD\u2019s recent structure of Higher Lows and take out a cluster of stop losses accumulated in this area. In this case we expect a rapid sell-off to commence. An immediate target is located around 1.0853\/76, however the main area of interest will be the price pivot zone at 1.0820.<\/p>\n<p style=\"text-align: justify;\">A bullish bounce starting from the 4H 50 SMA followed by a rally above 1.0985 will invalidate any bearish scenarios and mark the return of buyers, with interest extending as high as 1.1026 and 1.1052.<\/p>\n<p>*********<br \/>\nPrepared by Alex Z., Chief Currency Strategist at <a href=\"http:\/\/www.capitaltrustmarkets.com\/\">Capital Trust Markets<\/a><\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Technical Sentiment: Neutral Key Takeaways Housing Starts in Canada were up 1k, to 200k vs. forecast 194K; Double Top chart pattern stirs a small sell-off with larger potential; Uptrend at risk of reversal on a break below 1.0902. An overextended USD rally is showing increasing signs of exhaustion that may lead to a larger correction [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-55801","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/55801","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=55801"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/55801\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=55801"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=55801"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=55801"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}