USD/CAD WEEKLY PRICE CHART

Notes: Is the Canadian Dollar finally poised to strengthen (USD/CAD lower)? Price turned from key confluence resistance last week at 1.3103/32, “where the 100% extension of the September advance and the 61.8% retracement of the 2017 decline converges on the upper median-line parallel.” The reversal came alongside a brief probe above 60 in weekly RSI and heading into the close of the month, the risk is lower while below this threshold.

Bottom Line: Price has turned from resistance and we’re looking for evidence that a more significant high is in place. From a trading standpoint, I’ll favor fading strength while below structural resistance – interim support rests with the 52-week moving average / basic slope support ~1.2820s with a break below 1.2686 needed to validate the reversal. A breach / weekly close above the upper parallel would expose a topside rally targeting the 2017 high-week close at 1.3647.

USD/JPY WEEKLY PRICE CHART

Notes: The Japanese Yen may be poised for further strength (USD/JPY lower) after breaking below slope support (red) last week. Note that momentum does look a bit tired here and the possibility for a near-term recovery remains- that said, look for resistance ahead of last week’s high / the March open at 106.64/66.

Bottom line: Our outlook remains unchanged and we’ll favor, “fading strength sub-107.84 with a break lower targeting confluence support at 103.04/40 where the 100% extension and the 78.6% retracement converge on broader slope support (critical).”

USD/JPY IG CLIENT POSITIONING