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
Oil - US Crude
More View more
Real Time News
  • The Australian Dollar and New Zealand Dollar tend to rise with stocks. They have recently fallen despite gains in the #SP500. What does this mean for $AUDUSD and $NZDUSD ahead? #AUD #NZD #RBA #RBNZ - https://www.dailyfx.com/forex/fundamental/article/special_report/2020/01/17/AUDUSD-NZDUSD-Outlook-Looks-Past-Stocks-to-Rate-Cut-Bets.html?CHID=9&QPID=917702 https://t.co/ddf2fV7Kyl
  • A few snippets from today's commentary. Check out the link below for the full story (via @DailyFX). https://t.co/I31tuq764r https://t.co/x0BaiOFA1P
  • Have you joined @DailyFX @facebook group yet? Discuss your #forex strategies and brush up on your skills with us here: https://t.co/jtY1G7g8yx https://t.co/e2YrN3dBrl
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 98.00%, while traders in France 40 are at opposite extremes with 79.59%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/UL7hqSD2Ki
  • US Dollar Forecast: $USD Lacking Impetus Ahead of Consumer Sentiment #Forex traders shift focus away from US-China trade deal headlines - perhaps toward the monthly release of #ConsumerSentiment data for volatility and clues on the Greenback's next move https://www.dailyfx.com/forex/fundamental/us_dollar_index/usd_trading_today/2020/01/16/us-dollar-forecast-usd-lacking-impetus-ahead-of-consumer-sentiment.html
  • Forex Update: As of 05:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.11% 🇦🇺AUD: -0.02% 🇯🇵JPY: -0.03% 🇨🇭CHF: -0.05% 🇬🇧GBP: -0.06% 🇨🇦CAD: -0.07% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/Kxcb9EtIWb
  • Indices Update: As of 05:00, these are your best and worst performers based on the London trading schedule: Germany 30: 0.45% France 40: 0.26% Wall Street: 0.07% US 500: 0.00% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/I5YIsKQAog
  • 🇯🇵 JPY Tertiary Industry Index (MoM) (NOV), Actual: 1.3% Expected: 1.0% Previous: -5.2% https://www.dailyfx.com/economic-calendar#2020-01-17
  • The $JPY has weakened as a bounce-back in risk appetite saps haven-asset demand. However, the old uptrend line still provides clear resistance. Get your market update from @DavidCottleFX HERE:https://t.co/IMhgQ9jbF9 https://t.co/I7087olftk
  • Heads Up:🇯🇵 JPY Tertiary Industry Index (MoM) (NOV) due at 04:30 GMT (15min), Actual: N/A Expected: 1.0% Previous: -4.6% https://www.dailyfx.com/economic-calendar#2020-01-17
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

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

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


News & Analysis at your fingertips.