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Failed high, could the USDCAD continue lower?

November 18, 2022
by Joseph Jeffriess, Market Analyst

Happy Friday, today’s focus is on the USDCAD after sellers forced a failed high in yesterday’s session.

Yesterday’s price action was interesting as it showed buyers had little fight above 1.3350, with weaker oil prices. Philly fed manufacturing index may have also influenced as it dropped to -19.4, well below the -6.0% expected. Let’s get back to price and the current trend pattern, as that’s the main evidence I’m following. Yesterday’s failed high maintains a normal trend as the series of LHs and LLs continues.

We are looking to see if sellers have control and if they now set a new LL confirming yesterday’s LH and maintaining the series. A move down to 1.3250 that stalls and reverses is a warning. If buyers can break 1.3350 after holding at the support could be a warning of a short-term change in momentum.

We want to see a new leg lower from sellers that can test and break below 1.3250 support and the 1.3221 low. This will continue to trend pattern and could tell us that the downtrend has further to run. Traders will also need to keep an eye on oil prices as they could also have an impact on the current picture.

USDCAD Analysis Video

Thanks for stopping by. Good trading and have a great weekend.

 

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