The USD/CAD Trades Lower After Crude Inventories Data

Talking Points

• USD/CAD Fails to Breakout on Crude Inventories Data
• Bearish Breakouts Begin Under 1.3313
• SSI Has Shifted to Read +1.22

USD/CAD 30 Minute Chart

(Created using Marketscope 2.0 Charts)

Losing Money Trading? This Might Be Why.

The USD/CAD is trading back inside of Wednesday’s daily trading range, after prices failed to breakout higher above today’s R4 pivot point at 1.3495. This morning’s spike in price is attributed to the increased market volatility associated with the release of U.S. Crude Oil Inventories data. Crude inventories rose by 10.4 million barrels, which was significantly higher than expectations. With the USD/CAD now trading back inside of today’s R3 Camarilla Pivot point at 1.3450, traders may begin looking for prices to again test key points of support.

Today’s S3 pivot point is found at 1.3359. A decline to this value would be significant, as the USD/CAD would be printing a new weekly low. It is also worth mentioning that bearish breakouts today begin beneath 1.3313. A move to this point would completely invalidate this morning’s bullish momentum, while suggesting that prices are returning in the direction of the pair’s primary trend. Traders may extrapolate a 1X extension of today’s 91 pip range to place bearish breakout targets near 1.3222.

SSI (Speculative Sentiment Index) for the USD/CAD is currently reading at +1.22. While this value is not extreme, it is important to note that SSI has significantly flipped from last week’s reading of -1.01. If SSI continues to move towards a positive extreme, this flip in sentiment may signal further declines for the pair.

To Receive Walkers’ analysis directly via email, please SIGN UP HERE

See Walker’s most recent articles at his Bio Page.

Do you know the biggest mistake traders make? More importantly, do you know how to overcome the biggest mistake? Read page 8 of the Traits of Successful Traders Guide to find out [free registration required].

Contact and Follow Walker on Twitter @WEnglandFX.

original source

By: Walker England, Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term Trading Instructor