By Forex Signs, Inc.
At the opening of today’s trade, CADCHF pair is looking at a downtrend. Price level opened at 0.9607, a 110 pips decrease from previous opening. At present, resistance at H1 chart is measured at 0.9621 while support is determined at 0.9592. So far, the candlesticks are moving sideways while it is keeping a bearish momentum. Previous trade made an impact as the pair plunged to 0.9592, and broke its previous support by 97 pips. The Alligator (13,8,5) intertwined then opened its mouth leading to a downward movement at 09:00 yesterday. Looking at technical indicators on H1 chart, currently, %R (14) is leveling down towards a neutral level since it had touched the -100 stage a couple of times since yesterday. Most likely, the market will calm for a while then it will go back to oversold level again. Also, Bill Williams’ Fractals recommends a sell signal since the fractal arrow up at 0.9611 is lower than the Alligator’s teeth which is at 0.9646. Anyhow, CCI (14) at the moment is playing on neutral grounds, if ever CCI touches a level higher than 50, there is a possibility that the trend will go up.
Strong Retail Sales Helping US Recovery
For the upcoming American session strong Retail Sales report for November may help the US economy on its recovery as early reports suggest an increase of 0.6% gain for the last month following October’s 1.2% rise in purchases. This is the fifth consecutive month that retail sales climbed as Americans began their holiday shopping and shows consumers are now playing a big role in the US recovery. Producer price index is also expected to climb 0.6% for November, slightly higher than 0.4% increase in October.
Another important event is the release of the FOMC statement, wherein the Fed would announce their interest rates. Economists expect the Fed to keep its current rates, and would focus more on the accompanying statement. With this report comes some backlash, as economists will wait if the Fed would expand its quantitative easing program this might pull the greenback down again and might trigger a sell-off.
About the Author
Forex Signs, Inc., Founded in 2006 in Wall Street, New York City, FSI relentlessly strives to be the premier Forex brokerage company in the industry by providing exclusive and unmatched trading and investment related services while constantly developing innovative solutions that cater to the vast requirements of both individual and institutional market participants.
