We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Bearish
GBP/USD
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
USD/JPY
Mixed
Gold
Mixed
Oil - US Crude
Mixed
Bitcoin
Mixed
More View more
Notice

DailyFX PLUS Content Now Available Freely to all DailyFX Users

Real Time News
  • Your psychology has a significant impact on the decisions you make, particularly if you are new to trading. How can you avoid your emotions from turning you into a #FOMO trader? Find out: https://t.co/FC7CHpk9vA #FOMOintrading https://t.co/WSDr3JkpAG
  • $AUDUSD: Short-term support could lead-in to a quick bounce up to resistance as taken from another prior support level, plotted around the .6830 level on the chart. Get your market update from @JStanleyFX here: https://t.co/tUoe1Roo5t https://t.co/omaDxGNhZU
  • Central bank independence has several advantages. Find out what they are in detail with @MartinSEssex here: https://t.co/wVFXbbTxf1 https://t.co/cQQmuH8biQ
  • The US Dollar remains in consolidation mode against the Philippine Peso and Indian Rupee. Will the Singapore Dollar weaken as $USDSGD rising support holds ahead? Find out from @ddubrovskyFX here: https://t.co/HZ8Loqj3Ey https://t.co/6PCFkdj3ka
  • Follow @DailyFXedu for your regular #webinar updates with @DailyFX analysts and catch up on the webinars you missed. https://t.co/Da10QUg9r1
  • Greed has proven to be a hindrance more than assistance for traders. How does greed lead to #FOMOintrading? Find out from @RichardSnowFX here: https://t.co/aT8TZjlFqP https://t.co/Le8Qx6OOwV
  • $GBPUSD at the moment break-even straddles = 152pips meaning that for option traders to realize gains, the spot price must see a move greater than 152pips. Get your market update from @JMcQueenFX here: https://t.co/odj2lLRrGf https://t.co/RXCBwHGluG
  • $EURGBP has fallen over 6% since August and is now rapidly approaching a critical support level not reached since May. Will a break below accelerate the aggressive selloff? Find out from @ZabelinDimitri here: https://t.co/CBM8Fg7vM0 https://t.co/0yDnEpzQqR
  • The #Euro is struggling for direction against the US Dollar but the near-term downtrend guiding it lower since late June remains firmly intact. Where is $EURUSD heading? Get your technical analysis from @IlyaSpivak here: https://t.co/us6AINmuoe https://t.co/J4hQtyprYf
  • $DXY & $SPX500 hold steady after #FED rate cut. Get your update from @JohnKicklighter here: https://t.co/vqXlKCMDYA
Canadian Dollar Price Outlook: USD/CAD Bearish Reversal Underway

Canadian Dollar Price Outlook: USD/CAD Bearish Reversal Underway

2019-09-06 19:41:00
Peter Hanks, Junior Analyst
Share:

Canadian Dollar Price Outlook:

  • Repeatedly failing to breakthrough resistance around 1.335, USDCAD broke lower on Wednesday which has opened the door to greater losses
  • A Fed blackout week could see themes outside of monetary policy dictate US Dollar price action
  • The Canadian Dollar may be similarly devoid of monetary policy commentary in the near term following Wednesday’s Bank of Canada rate decision

Canadian Dollar Price Outlook: USD/CAD Bearish Reversal Underway

Three weeks ago I highlighted a bearish trading opportunity on USDCAD amid a series of failed tests at resistance. Evidently, the probes continued but bears stood their ground affording the pair little progress higher. Following a relatively hawkish monetary policy stance from the Bank of Canada, the US Dollar broke lower against its Canadian Dollar counterpart on Wednesday and continued its descent on Friday as I outlined in my webinaron Thursday.

USD/CAD Price Chart: Daily Time Frame (January – September) (Chart 1)

USDCAD price chart outlook

Consequently, USDCAD has delivered a confirmed break of the ascending trendline that originated in mid-July and the horizontal support from March. Also slipping beneath its 200-period moving average, bearish momentum may continue which will allow for adjusted areas of interest and invalidation. With the initial invalidation zone comfortably out of reach, the secondary invalidation point will now reside near the 1.3250 level – coinciding with the horizontal resistance from March.

USDCAD chart

Likewise, areas of interest should also be adjusted lower. Given that IG Client Sentiment data reveals retail traders are becoming more bullish, the converging positioning suggests the pair could be destined for a deeper reversal. If retail positioning flips entirely to the bullish side and continues to diverge, USDCAD could look to test July lows.

USD/CAD Price Chart: 4 - Hour Time Frame (July – September) (Chart 2)

usdcad price chart outlook

Therefore, a new point of interest on USDCAD can be found near the support offered in mid-July around the 1.3016 level. A sticking point could materialize at the various swing highs in mid-July around the 1.3146 area but seems unlikely to single-handedly rebuke a continuation lower. As price action unfolds, follow @PeterHanksFX on Twitter for updates and analysis on this USDCAD trading opportunity.

--Written by Peter Hanks, Junior Analyst for DailyFX.com

Contact and follow Peter on Twitter @PeterHanksFX

Read more:Dow Jones September Forecast: Expect a Return of Volume and Volatility

provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.