- Updated levels on trade setup we’ve been tracking in USD/CAD and AUD/ USD
- Join Michael for Live Weekly Strategy Webinars on Mondays on DailyFX at 12:30 GMT (8:30ET)
- Check out our 2018 projections in our Free DailyFX USD Trading Forecasts
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USD/CAD Daily Price Chart
![USD/CAD Daily Price Chart](https://a.c-dn.net/b/311xfJ/Near-term-Trade-Setups-in-USDCAD-and-AUDUSD-Price-Technical-Chart-Analysis-MBCS_body_USDCADDailyPriceChart.jpg)
In last week’s USD/CAD Price Outlook we highlighted that the rally was, “vulnerable near-term while below 1.3685. From a trading standpoint, I’ll favor fading weakness while below this region targeting a move towards the lower parallel.” The subsequent breakdown has taken price below the October parallel and a close at these levels would keep the focus lower sub-1.3435.
Initial support rests at 1.3290 backed by the 61.8% line of the ascending pitchfork (currently ~1.3260s) and the 50% retracement at 1.3224- Look for a larger reaction there if reached. Review this week’s Strategy Webinar for an in-depth breakdown of this USD/CAD trade setup and more.
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AUD/USD Daily Price Chart
![AUD/USD Daily Price Chart](https://a.c-dn.net/b/4fFEIa/Near-term-Trade-Setups-in-USDCAD-and-AUDUSD-Price-Technical-Chart-Analysis-MBCS_body_AUDUSDDailyPriceChart.jpg)
Aussie posted an outside weekly reversal off basic channel support last week on building momentum divergence. The move keeps the focus higher for now while above the low-day close at 7005. Initial resistance stands at 7146 backed by the 100-day moving average and 7255/75- a breach / close above this level is needed to suggest a more significant low may have been registered last week. For now, looking for a decent set-back to offer favorable entries. I’ll publish an updated AUD/USD Technical Outlook once we get further clarity on near-term price action.
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AUD/USD Trader Sentiment
![AUD/USD Trader Sentiment](https://a.c-dn.net/b/4FBGqH/Near-term-Trade-Setups-in-USDCAD-and-AUDUSD-Price-Technical-Chart-Analysis-MBCS_body_AUDUSDTraderSentiment.png)
- A summary of IG Client Sentiment shows traders are net-long AUD/USD - the ratio stands at +1.59 (61.4% of traders are long) – bearishreading
- Traders have remained net-long since December 4th; price has moved 2.4% lower since then
- Long positions are9.7% higher than yesterday and 24.5% lower from last week
- Short positions are 21.0% higher than yesterday and 60.7% higher from last week
- We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests AUD/USD prices may continue to fall. Yet traders are less net-long than yesterday & compared with last week and the recent changes in sentiment warn that the current AUD/USD price trend may soon reverse higher despite the fact traders remain net-long.
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-Written by Michael Boutros, Currency Strategist with DailyFX
Follow Michaelon Twitter @MBForex