By Admiral Markets
The USD/CAD is in a strong uptrend. However traders need to pay attention to Trade balance data release today which measures the difference in value between imported and exported goods during the reported month. From the current standpoint 1.2455-70 is the POC zone ( PPC, W H4, ATR pivot, 14.6) and during strong trend 14.6 is known to reject the price. However on a deeper retracement that might happen after the news depending on the actual result, the USD/CAD could drop to POC2 (D L4, previous week’s high, EMA89, 38.2, W H3) 1.2370-95. Targets on a bounce are 1.2560 and 1.2630. 1.2325 needs to hold else the price might get back into the downward AP channel.
W L3 - Weekly Camarilla Pivot (Weekly Interim Support)
W H3 - Weekly Camarilla Pivot (Weekly Interim Resistance)
W H4 - Weekly Camarilla Pivot (Strong Weekly Resistance)
D H4 - Daily Camarilla Pivot (Very Strong Daily Resistance)
D L3 – Daily Camarilla Pivot (Daily Support)
D L4 – Daily H4 Camarilla (Very Strong Daily Support)
PPR - Progressive Polynomial Channel
AP -Andrew’s Pitchfork
POC - Point Of Confluence (The zone where we expect price to react aka entry zone)
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Article by Admiral Markets
Admiral Markets is a leading online provider, offering trading with Forex and CFDs on stocks, indices, precious metals and energy.