USD / CAD Technical Analysis June 28

Can the stability at 1.2958 force the USDCAD lower?

The pair has been recently oscillating between the range of 1.3135 and 1.2958 as the sellers took their chances to control the price.

The buyers attempted to place greater pressures since the 23rd of June 2016 and managed to boost the price from 1.2684 to 1.3135. Today’s major pivot point area is the 1.2958 level.

Probable Scenario

The latest stabilization of the pair slightly close to the 1.2958 area is a good indication that the price may retrace once again to the downside.

In the event where the pair drops, the sellers could lock their profit at 1.2684.

The Stochastic oscillator confirms the downtrend formation thus showing that the pair has greater probabilities of resuming downwards.

Alternative Scenario

In contrast, in the condition where the bullish pressures get more tensed and the pair breaks above the 1.3135 level, the price could rise to 1.3420.

Today’s Major Announcements

The Gross Domestic Product Price Index (Q1), the Gross Domestic Product Annualized (Q1), the Personal Consumption Expenditures Prices (QoQ) (Q1), the Core Personal Consumption Expenditures (QoQ) (Q1), the S&P/ Case – Shiller Home Price Indices (YoY) (Apr), and the Consumer Confidence (Jun) releases are expected to have a medium impact on the U.S. dollar

There are no any major announcements that may have a strong impact on the Canadian dollar

Synopsis

Probable trend (Bearish): 1.2958

Bearish take profit target: 1.2684

Stop loss target: 1.3135

Alternative trend (Bullish): 1.3135

Bullish take profit target: 1.3420