 Good morning, and welcome to the chart of the week video with me David Madden. Today's date is Thursday the 9th of January 2020 rather 2020 And the time has just gone 1120 GMT and this week's chart of the week is the US dollar versus the Canadian dollar the dollar can't And if you take a look at the price action for the last few months We can see that's been in a fairly clear downward trend We can see here That late December broke below this trend line which previously acted as fairly decent support And in fact in a new receive it fell down to a level last seen 14 months previous So in a 14 month low Not that long ago, but since then we've seen a bit of a rebound And this video is this talk about the possibility of the market potentially moving back up Towards you can a 131 level or perhaps even towards this this trend trend line here Or could it be a possibility? This is just short-term bounce before the next move to the downside Like I was saying recently the market has been in a very clear downward trend But if you take a look on the price action on the new receive at 31st of December We could notice there's a fairly long wick on the candle this daily candle and that suggests indecision And then if you look the price action after that the market was trading in a relatively small range And if you take a look at this candle here at the daily candle from Tuesday the 7th of January We could see that appears to look like a bullish engulfing candle And since then we've had the market push on higher now Just for those of you who are unfamiliar with technanalysis or the term bullish engulfing This is a textbook example of it here Whereby the markets in the downward trend we could see here that this on this upward candle here This textbook example It doesn't always be an absolute perfect example in reality, but a textbook example the market here opens Below the previous days close, but then it manages to close above the previous days open So body of the candle here completely engulfs The body of the previous session and then we can see the market begins to kind of push on higher That's the confirmation that the market has moved on from moving upward from that point So I suspect this is the possibility that this candle that we saw here on Tuesday the 7th Could be a bullish engulfing and since then we see the market move high Which adds weight to the argument that it is a bullish engulfing Like I said previous of that on New Year's Eve We had some indecision here. This could be a sign that the market is Rebounding not the set of a full correction, but it could press on higher in the near term Also, if you take a look at the MACD indicator MACD histogram as the markets be moving higher It's been a steady drop-off in negative momentum So for the time being it seems that the momentum is with fires So if we do press on higher from here in the near term We could look at retesting this area here in around one spot thirty one one spot thirty one ten And if we go beyond that we could potentially head back and forth this trend line here And which we're going to play in around one thirty one sixty there they're about and if you do manage to actually Push above the trend line and hold above it That could be a sign that kind of more recent downward trend has come to an end Alternatively, we could see the market as a near term bounce back where it runs into resistance in around here Or perhaps the trend line itself and then looks to head back down towards 130 big psychology number on if you and if you take out the recent lows in at one spot twenty nine fifty one That could set us on the on track for one spot twenty nine twenty six that area there they're about Now if you are going to be trading the US dollar first the Canadian dollar, please keep in mind that later today at 1330 GMT we have the US job as claims and we also have the US Apologies, we also have the Canadian building permits figures That can that's involuntarily to the markets and tomorrow We have the all-important US non-farm payroll figures and also the Canadian employment numbers And they're both coming out at 1330 GMT tomorrow and on top of that just to remind you I'm hosting a webinar tomorrow covering the non-farm payrolls report I'll also be giving a shout-out to the Canadian numbers as well And you can sign up for this webinar on our website if you go to cmcmarkets.com Under insights under webinars and events you will you'll find the other webinar here it begins tomorrow at 1315 GMT some of the numbers come out at 1330. So we talked about what's going on in the markets Reading out the numbers reacting to the numbers and then discussing what potential price action from there Thank you for listening to this video and please tune into our webinar tomorrow. I please continue listening to our videos Thank you very much