Home CAD can extend its falls after Trump slaps tariffs on Mexico
Daily Look

CAD can extend its falls after Trump slaps tariffs on Mexico

US President Donald Trump has announced fresh tariffs on Mexico, sending the Mexican peso down. Canada, the third partner in the USMCA agreement, is also on the back foot ahead of the all-important GDP release.

The  Technical Confluences Indicator  shows that USD/CAD faces only weak resistance at  1.3597  where the Pivot Point one-week Resistance 2   and the Fibonacci 161.8% one-week converge.

The upside target is  1.3654  where we see the convergence of the Pivot Point one-month Resistance 2 and the PP one-week R3.

Looking down, USD/CAD is backed by massive support. A dense cluster of lines awaits at  1.3507. It includes the Fibonacci 38.2% one-day, the previous weekly high, the Pivot Point one-week Resistance 1, the Fibonacci 61.8% one-day, and the Bollinger Band 15min-Lower.

Further down, another busy juncture awaits it at  1.3464  and it includes the Bollinger Band one-day-Middle, the Simple Moving Average 100-4h, the SMA 200-1h, the SMA 10-1d, and the SMA 50-4h.

The path of least resistance is clearly to the upside.

Here is how it looks on the tool:

USD CAD technical confluence May 31 2019

Confluence Detector

The Confluence Detector finds  exciting opportunities using Technical Confluences.  The TC is a tool to locate and point out those price levels where there is a  congestion of indicators,  moving averages,  Fibonacci levels, Pivot Points, etc. Knowing where these congestion points are located is very useful for the trader, and can be used as a basis for different strategies.

This tool assigns a certain amount of “weight” to each indicator, and this “weight” can influence  adjacents  price levels. These weightings mean that one  price level without any indicatoror moving average but under the influence of two “strongly weighted” levels accumulate more resistance than their neighbors. In these cases, the tool signals resistance in apparently empty areas.

Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.