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
Mixed
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
GBP/USD
Bearish
USD/JPY
Mixed
Gold
Mixed
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
Oil - US Crude
Bullish
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
Bitcoin
Bearish
More View more
Real Time News
  • $USDCNH rises over 0.25% this morning to test resistance at 7.04 https://t.co/f0TAGOhUXV
  • Canadian Dollar Price Analysis: Loonie Drops, USD/CAD Turn or Burn? https://www.dailyfx.com/forex/fundamental/daily_briefing/session_briefing/daily_fundamentals/2020/02/20/Canadian-Dollar-Price-Action-Analysis-JS-Loonie-Drops-USDCAD-USD-to-CAD-Turn-or-Burn.html https://t.co/n79GzbgAaK
  • 🇺🇸 USD Philadelphia Fed Business Outlook (FEB), Actual: 36.7 Expected: 11.0 Previous: 17.0 https://www.dailyfx.com/economic-calendar#2020-02-20
  • 🇺🇸 USD Initial Jobless Claims (FEB 15), Actual: 210k Expected: 210k Previous: 206k https://www.dailyfx.com/economic-calendar#2020-02-20
  • 🇺🇸 USD Philadelphia Fed Business Outlook (FEB), Actual: 36.7 Expected: 11 Previous: 17 https://www.dailyfx.com/economic-calendar#2020-02-20
  • 🇺🇸 USD Continuing Claims (FEB 8), Actual: 1726k Expected: 1717k Previous: 1701k https://www.dailyfx.com/economic-calendar#2020-02-20
  • 🇺🇸 USD Continuing Claims (FEB 8), Actual: 1.73M Expected: 1717k Previous: 1698k https://www.dailyfx.com/economic-calendar#2020-02-20
  • 🇺🇸 USD Initial Jobless Claims (FEB 15), Actual: 210K Expected: 210k Previous: 205k https://www.dailyfx.com/economic-calendar#2020-02-20
  • Trading Global Markets Decoded #podcast's new episode 🙌 features @graceblakeley, British Economic Commentator, who covers - UK outlook following #Brexit Does climate crisis represent a free-market failure Where is the global economy heading Tune in today! https://t.co/Twr44cZ1GB https://t.co/rM5Zds1YQE
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.08%, while traders in France 40 are at opposite extremes with 80.89%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/0vtZLeWgcP
USD/CAD Tests Multi-Month Daily Trend

USD/CAD Tests Multi-Month Daily Trend

2011-10-25 14:16:00
Walker England, Trading Instructor,
Share:

The USD/CAD has been giving us mixed signals throughout 2011. Currently, the Pair is trading near the parity figure, which has been traded through previously in January, and September. Currently daily support is found by connecting the July 26th low at .9405 with the September 16th low at 97.84. Currently price is testing a third touch of support and is awaiting the pair to either bounce or break.

Fundamentally, the USD/CAD trades in an inverse correlation with USOIL. As concerns about the global turndown have subsided we have seen the CAD and Oil prices rally. If recovery remains a theme we would look for our daily trend line to break. Conversely, if another bout of economic crisis emerges, this is a potential catalyst for both pairs to bounce off of their established trend lines.

USD.CAD_Tests_Multi_Month_Daily_Trend_body_Picture_1.png, USD/CAD Tests Multi-Month Daily Trend

Taking Price in to a 4Hour chart we can see our downtrend established from our October 4th high of 1.0656. Price has been moving steadily downward to today’s low of just under parity, at .9989. If price is to make new lows it must stay under resistance found at 1.0190, denoted by our 78.6%Fib line. A break above this level and a new high on the chart would indicate a validation of our daily support line seen above.

USD.CAD_Tests_Multi_Month_Daily_Trend_body_Picture_2.png, USD/CAD Tests Multi-Month Daily Trend

My preference is to sell the USD/CAD against its 78.6% retracement at the 1.0190 level. Stops should be placed outside of the previous high at 1.0250. Limits should look for 1.0070 or better for a clear 1:2 Risk reward ratio. Secondary targets may search for lower lows under parity.

Alternative scenarios include price breaking through resistance and moving on to new highs indicating a bounce off our daily trend line.

Additional Resources

Support and Resistance Video

Trading Breakouts

---Written by Walker England, Trading Instructor To contact Walker, email instructor@dailyfx.com

Follow me on Twitter at @WEnglandFX.

To be added to Walker’s e-mail distribution list, send an email with the subject line “Distribution List” to instructor@dailyfx.com

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

DISCLOSURES

News & Analysis at your fingertips.