USDCAD
Let’s start today’s analysis with the USDCAD which has been trading in a downward trend recently. According to the Overbalance strategy, as long as the price sits below the upper limit of 1:1 structure bears are in advantage. Looking at the daily interval, one can see that buyers were trying to break above the downward trendline but failed to do so. The pair reached the important support today, and direction of a future move will depend on reaction to this hurdle. If buyers maange to halt declines there, upward correction could be on the cards. However, one should remember that the main trend remains downward and break below support at 1.3415 could see declines deepen.
USDCAD D1 interval. Source: xStation5
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile appOIL.WTI
Crude price managed to reach a fresh post-pandemic highs. However, buyers were unable to hold onto gains and price pulled back. OIL.WTI is trading near recent highs ($41.60) and continued pullback would signal that correction has started. Decline may deepen once commodity breaks below the local trendline marked with red colour. Downward move could target the lower limit of 1:1 structure at $36.35.
OIL.WTI H4 interval. Source: xStation5
US100
Last but not least, let’s take a look at the US tech index, where buyers remain in play. US100 bounced off the lower limit of 1:1 structure last week, confirming that the main trend is upward. However, after reaching a fresh all-time high, sellers took over. Trend remains upward but correction move may be on the cards. Break below the aforementioned lower limit of 1:1 structure (10,440 pts.) would be a signal for deeper downward move. In such a scenario, the first key support can be found neart the previous highs (9.750 pts).
US100 D1 interval. Source: xStation5
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
