Type : Bearish DropKey Levels:Resistance : 0.77455 Pivot: 0.76955 Support : 0.76460 Preferred Case: On the H1, price is moving below the ichimoku cloud and along the descending trendline which gives us a bearish bias that prices will drop to the pivot at 0.76955 where the 50% fibonacci retracement and swing low support are. Once there is downside confirmation that price has dropped to pivot , we would expect bearish momentum to carry prices to 1st support at 0.76460 where the swing low support, 78.6% fibonacci projection and 161.8% fibonacci extension are. Alternative scenario: Alternatively, price may rise to the 1st resistance level at 0.77455 in line with the swing high resistance, 78.6% fibonacci retracement and 78.6% fibonacci projection . Fundamentals: A stronger than expected CPI data (Actual: 1.4% Expected 1.0%) overnight helped the CAD find some strength against the USD. With the CPI data reinforcing market expectation for the BoC to hike rates by 75bps at the next meeting, look for the CAD to continue strengthening into the US session, giving us a medium bullish bias for the canadian dollar .
Source: Tickmill
