Earlier than the week involves a detailed, I’m seeking to make fast pips off this textbook pattern setup on the 4-hour chart of USD/CAD.
Check out the channel pullback ranges I’m watching.
Earlier than transferring on, ICYMI, yesterday’s watchlist checked out EUR/GBP’s potential vary breakdown forward of the U.Ok. fiscal plans announcement. Remember to try if it’s nonetheless a sound play!
And now for the headlines that rocked the markets within the final buying and selling periods:
Contemporary Market Headlines & Financial Information:
U.S. Philly Fed index down from -8.7 to -19.4 in Nov vs. -6.0 estimate
U.S. Oct constructing permits down from 1.56M to 1.53M, housing begins dip to 1.43M
Japanese Oct nationwide core CPI up from 3.0% to three.6% y/y vs. 3.5% forecast
BOJ Governor Kuroda admits inflation might nonetheless maintain rising in coming months
U.Ok. Nov GfK shopper confidence index up from -47 to -44 vs. -46 estimate
U.Ok. Oct retail gross sales rebounded 0.6% m/m after earlier 1.5% hunch
North Korea fired a suspected ICBM close to Japanese coast
U.S. present dwelling gross sales at 3:00 pm GMT
U.S. CB main index at 3:00 pm GMT
BOE MPC member Haskel’s speech at 5:15 pm GMT
Use our new Forex Warmth Map to shortly see a visible overview of the foreign exchange market’s value motion! 🔥 🗺️
What to Watch: USD/CAD
USD/CAD 4-hour Foreign exchange Chart
It’s shaping as much as be a little bit of a quiet finish to the buying and selling week, not less than by way of financial releases, so I’m a easy pattern play on USD/CAD.
The pair has shaped decrease highs and decrease lows related by a falling channel that’s been holding since mid-October.
Worth appears prepared for an additional pullback to the channel resistance, which is true smack according to the 61.8% Fibonacci retracement stage.
The 100 SMA is under the 200 SMA to verify that the selloff is extra more likely to resume than to reverse, and the previous even traces up with the channel prime so as to add to its power as a ceiling.
Stochastic is suggesting that sellers are able to take over, because the oscillator is transferring south from the overbought zone. In that case, USD/CAD could be nicely on its solution to check the swing low at 1.3223 or the channel backside.
Solely a few low-tier information factors are up for launch from the U.S. economic system at this time, so market gamers may take their cues from threat sentiment as an alternative.
By the appears of it, risk-off flows are in play, following the suspected ICBM launch from North Korea and certain delays in China’s reopening.
If this somber temper retains up, I’d look out for a safe-haven rally and a bullish USD/CAD breakout!
