News & Analysis at your fingertips.

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.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
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
Oil - US Crude
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
Wall Street
Mixed
Gold
Mixed
GBP/USD
Mixed
USD/JPY
Mixed
More View more
Real Time News
  • 1900-1920 support no longer in $Gold down to the next spot on the chart - 1871 is 50% of June-August bullish move. That monthly chart though - working on a non-completed evening star formation (img 2) https://t.co/piWVcG2RBh https://t.co/KVhkJiM8Sx
  • 🇺🇸 House Price Index MoM (JUL) Actual: 1.0% Previous: 0.9% https://www.dailyfx.com/economic-calendar#2020-09-23
  • Heads Up:🇺🇸 Fed Mester Speech due at 13:00 GMT (15min) https://www.dailyfx.com/economic-calendar#2020-09-23
  • Heads Up:🇺🇸 House Price Index MoM (JUL) due at 13:00 GMT (15min) Previous: 0.9% https://www.dailyfx.com/economic-calendar#2020-09-23
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.27%, while traders in NZD/USD are at opposite extremes with 66.87%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/peklh4PMnX
  • Entry orders are a valuable tool in forex trading. Traders can strategize to come up with a great trading plan, but if they can’t execute that plan effectively, all their hard work might as well be thrown out. Learn how to place entry orders here: https://t.co/lAFyv1gM0P https://t.co/fXShtfgera
  • Forex Update: As of 12:00, these are your best and worst performers based on the London trading schedule: 🇬🇧GBP: -0.07% 🇪🇺EUR: -0.14% 🇨🇭CHF: -0.17% 🇨🇦CAD: -0.25% 🇳🇿NZD: -0.76% 🇦🇺AUD: -0.80% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/qpVEMWkF9W
  • Fed Vice Chair Clarida says he wants inflation to spend some above 2%, adds that he is not going to think about raising rates until actual inflation is 2%
  • Key levels in forex tend to draw attention to traders in the market. These are psychological prices which tie into the human psyche and way of thinking. Learn about psychological levels here:https://t.co/1oygcFMFNs https://t.co/9VjJlOHuz8
  • China's cabinet says will step up punishment for irregularities such as market manipulation and insider trader
USDCAD Risks Reversal Ahead of NFPs- 1.0950 Key Resistance

USDCAD Risks Reversal Ahead of NFPs- 1.0950 Key Resistance

2014-06-04 20:16:00
Michael Boutros, Strategist
Share:

Talking Points

  • USDCAD breakout now at interim resistance
  • Risk of near-term reversal heading into close of week
  • Major Event Risk on tap from US & Canada

USDCAD Daily Chart

USDCAD Risks Reversal Ahead of NFPs- 1.0950 Key Resistance

Chart Created Using FXCM Marketscope 2.0

Technical Outlook

  • USDCAD testing near-term resistance 1.0943/50
  • Breach targets topside resistance objectives at 1.0990, 1.1028/45- bearish invalidation
  • Interim support at former trendline resistance, 1.0851/60- bullish invalidation
  • Daily RSI break above multi-month resistance trigger / 50 breach - bullish
  • Major Event Risk Ahead: US Non-farm Payrolls & Canadian Employment on Friday morning

USDCAD Scalp Chart

USDCAD Risks Reversal Ahead of NFPs- 1.0950 Key Resistance

Notes: A rally back above 1.0860 early in the week and a clean break of the weekly opening range high at 1.09 on Tuesday shifted our scalp bias to the topside for the USDCAD. However the pair is now testing a key resistance range ahead of major event risk this week with intra-day RSI divergence at the highs warning of possible near-term exhaustion.

Bottom line: although the broader outlook is weighted to the topside, our immediate focus is against the 1.0950/60 resistance zone with the one-two NFP/Canadian Employment punch on Friday likely to offer a catalyst for either a correction lower or a definitive breach and continuation through 1.0960. Keep in mind we are just putting in the June opening range and our base-case scenario is for a near-term pullback in the greenback heading into the start of the month. Follow the progress of this trade setup and more throughout the trading week with DailyFX on Demand.

* 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

Technical Relevance

Bearish Invalidation

Daily / 30min

1.0942/60

100% Ext / 61.8% Retracement

Break Target 1

Daily / 30min

1.0990 – 1.10

38.2% & 78.6% Retracement(s)

Break Target 2

Daily / 30min

1.1028/45

1.618% Ext / 50% Retrace / April Highs

Break Target 3

Daily

1.1100

61.8% Retracement

Break Target 4

Daily

1.1167/78

78.6% Retracement / January Close High

Support Target 1

30min

1.0923

23.6% Retracement

Bullish Invalidation

30min

1.0903

38.2% Retrace / Weekly ORH

Break Target 1

30min

1.0887

50% Retracement

Break Target 2

30min

1.09870

61.8% Retracement

Break Target 3

Daily

1.0851/59

38.2% & 61.8% Retrace(s) / April Low

Break Target 4

30min

1.0831/36

61.8% & 88.6% Retrace(s) / Weekly ORL

Break Target 5

Daily

1.0792

61.8% Extension

Average True Range

Daily (20)

49

Profit Targets 13-15pips

*ORH: Opening Range High

*ORL: Opening Range Low

Other Setups in Play:

---Written by Michael Boutros, Currency Strategist with DailyFX

For updates on this scalp and more setups follow him on Twitter @MBForex

To contact Michael email mboutros@dailyfx.com or Click Here to be added to his email distribution list

Join Michael for Live Scalping Webinars Thursday this week on DailyFX Plus (Exclusive of Live Clients) at 15:30 GMT (11:30ET)

Interested in learning about Fibonacci? Watch this Video

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

DISCLOSURES