{"id":58259,"date":"2014-08-18T08:02:51","date_gmt":"2014-08-18T12:02:51","guid":{"rendered":"http:\/\/countingpips.com\/?p=58259"},"modified":"2014-08-19T13:17:39","modified_gmt":"2014-08-19T17:17:39","slug":"usdcad-one-step-away-from-free-fall","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2014\/08\/usdcad-one-step-away-from-free-fall\/","title":{"rendered":"USD\/CAD: One Step Away From Free-Fall"},"content":{"rendered":"<div id=\"inves-3210126777\" class=\"inves-below-title-posts inves-entity-placement\"><div id =\"posts_date_custom\"><div align=\"left\">August 18, 2014<\/div><hr style=\"border: none; border-bottom: 3px solid black;\">\r\n<\/div><\/div><p>Technical Sentiment: <span style=\"color: #ff0000;\"><strong>Bearish<\/strong><\/span><\/p>\n<p><strong>Key Takeaways<\/strong><\/p>\n<ul>\n<li>Price remains stable below previous range support at 1.0903;<\/li>\n<li>One last hurdle remains before USD\/CAD enters bearish territory;<\/li>\n<li>NAHB Housing Market Index report up next (neutral expectations);<\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><em>Traders turned bearish on USD\/CAD late last week. On Monday the markets are expected to remain relatively quiet. Most traders are staying on the sidelines waiting for the US CPI and Core CPI due on Tuesday, followed by FOMC Meeting Minutes on Wednesday. Until then price action will revolve around two key levels.<\/em><\/p>\n<p>&nbsp;<\/p>\n<p><strong>Technical Analysis<\/strong><\/p>\n<p style=\"text-align: justify;\">From a technical perspective, USD\/CAD has already taken the first step showcasing the escalading pressure for a USD correction against a slightly bullish CAD bias. Price action has progressed as anticipated following last week\u2019s range break. Traders immediately took notice of 1.0860, a \u00a0support cluster formed between the 100-Day and 200-Day Simple Moving Averages, dipping down to this area and bouncing off of it quickly afterwards. An important observation regarding this bounce concerns the Daily bar Close on Friday 15<sup>th<\/sup> August. Price closed below the previous range support, consolidating the bearish view.<\/p>\n<p><a href=\"http:\/\/capitaltrustmarkets.com\/wp-content\/uploads\/2014\/08\/USDCAD-18th-August.png\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-5746\" src=\"http:\/\/capitaltrustmarkets.com\/wp-content\/uploads\/2014\/08\/USDCAD-18th-August.png\" alt=\"USDCAD 18th August\" width=\"700\" height=\"344\" \/><\/a><\/p>\n<p style=\"text-align: justify;\">A break below the 100-Day &amp; 200-Day support cluster will open the door for another USD\/CAD sell-off. Stochastic continues to decline on an increasingly steeper slope, indicating further weakness for the pair in the coming days. Below 1.0860 traders will initially target 1.0820 in what will likely be a quick selling burst. If US data will largely disappoint this week we might see the sell-off escalate down to 1.0715, albeit this scenario is highly unlikely.<\/p><div id=\"inves-4018094511\" 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;\">On a Daily close above 1.0903, inside the previous range, traders should be quick to reduce their short positions or preferably close them altogether; since USD\/CAD will attempt to slowly regain the bullish bias and target the tops at 1.0984.<\/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: Bearish Key Takeaways Price remains stable below previous range support at 1.0903; One last hurdle remains before USD\/CAD enters bearish territory; NAHB Housing Market Index report up next (neutral expectations); Traders turned bearish on USD\/CAD late last week. On Monday the markets are expected to remain relatively quiet. Most traders are staying on [&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-58259","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/58259","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=58259"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/58259\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=58259"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=58259"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=58259"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}