USDCAD Daily Chart
Chart Created Using FXCM Marketscope 2.0
Technical Outlook
- USDCAD has now run into Key Resistance at a 3-way Fib Confluence at 1.0540/45
- Daily RSI looks to turn over ahead of the 70-threshold- Break of former Resistance to offer trigger
- Price action today (magnitude of the pullback) suggests markets watching this level
- Near-term looking sideways-to-lower
- Medium-term outlook remains bullish above 1.04
- Note that Friday’s rally took out Trendline resistance dating back to the 2010 high
- Primary objective 1.04 - Break targets secondary objective at 1.0340
- Key Events Ahead: US Durable Goods, Consumer Confidence, New Homes Sales Tomorrow – Canada GDP data on Friday
USDCAD Scalp Chart
Scalp Notes: Bottom Line: Although out longer-term bias remains weighted to the topside, this key resistance barrier may offer near-term scalps into near-term support. Medium-term traders will use these pullbacks to initiate new long entries. BE WARNED that this pair is notorious for both sideways price action and shallow pullbacks and scalps should be meticulously booked at the targeted ATR percentage. We will ease up on the shorts as we approach the 1.04 threshold as this region represents key support (origin of the breakout last week) in the near-term with a break and daily close below this mark offering further conviction on a steeper correction.
*We will remain flexible with our bias with a break above 1.0555 eyeing subsequent resistance targets. It’s extremely important to give added consideration regarding the timing of intra-day scalps with the opening ranges on a session & hourly basis offering further clarity on intra-day biases.
Key Threshold Grid
|
Entry/Exit Targets |
Timeframe |
Level |
Significance |
|
Bearish Invalidation |
Daily / 30min |
1.0542- 1.0555 |
Monthly High / 100% Fib Exts / 88.6% Retrace |
|
Break Target 1 |
30min |
1.0600 |
Big Figure / Soft Resistance |
|
Break Target 2 |
Daily |
1.0656 |
2011 High / Pivot |
|
Break Target 3 |
Daily / 30min |
1.0699 |
138.2% Fibonacci Extension |
|
Support Target 1 |
Daily / 30min |
1.0456 |
78.6% Fib Ext / 23.6% Retracement |
|
Support Target 2 |
30min |
1.0420 |
May High / Dec 2011 High / Soft Support |
|
Bullish Invalidation |
Daily / 30min |
1.0389-1.04 |
61.8% Fib Ext / 38.2% Retrace |
|
Break Target 1 |
30min |
1.0340-1.0345 |
50% Fib Ext / 50% Retrace |
|
Break Target 2 |
30min |
1.0290-1.03 |
38.2% Fib Ext / 61.8% Retrace |
|
Break Target 3 |
30min |
1.0255 |
Soft Support / Pivot |
|
Break Target 4 |
30min |
1.0232 |
23.6% Fib Ext / Pivot |
|
Average True Range |
Daily |
126 |
Profit Targets 28-30pips |
Other Scalp Setups in Play- EUR, GBP to Extend Tumble- Gold Decline Eyes Key Support $1273
Reviews today’s Scalp Webinar for further insights and current trade setups
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---Written by Michael Boutros, Currency Strategist with DailyFX
To contact Michael email mboutros@dailyfx.com or Click Here to be added to his email distribution list
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