July 4 , 2018
By analyzing the daily technical chart pair is turning back to south side as profit booking is going on in the pair. Well we have a strong rally from 1.2545 level to 1.3370 level and it now we can see some retracement is going on . The intraday traders can go for short as pair may test the 1.3056 level and 1.2955 level which are the 38.2% and 50% of fibonacci retracement support.
A dark cloud candlestick followed by bearish marabuzo candlestick is generating bearish signal for the time being and RSI also confirmed this move from the overbought territory. An uptrend line is still valid on the daily chart and generating bullish signal for intermediate to long term traders. The current selloff is nothing but some retracement of profit booking so investors are advised to wait for the right time to buy again.
However, yesterday’s data from Canada showed that the activity in the manufacturing sector expanded at its fastest pace since Markit started publishing the PMI data back in 2011 and helped the CAD remain resilient against its American counterpart.
Presently pair is trading below all the major and minor moving averages and heading south side. Odds are in favor of bears and we will keep our bias bearish on the pair as long as 1.3350 level remains intact. A clear bearish breakout on MACD indicator is also favoring the bears and generating bearish signal. RSI is also supporting the bears from the overbought territory. The 1.3350 level could be seen as immediate resistance level followed by 1.3400 level whereas 1.3000 level is strong key support level followed by 1.2950.
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