Skip to content
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. See our updated Privacy Policy here.

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
Subscribe
Please try again
Gold
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
More View more
USDCAD Breakdown at Initial Support- Short Scalps Favored Sub 1.24

USDCAD Breakdown at Initial Support- Short Scalps Favored Sub 1.24

Michael Boutros, Strategist

Talking Points

  • USDCAD breaks below June opening range- pullback testing initial support
  • Updated targets & invalidation levels
  • Event Riskon TapThis Week

USDCAD Daily

USDCAD Breakdown at Initial Support- Short Scalps Favored Sub 1.24

Chart Created Using FXCM Marketscope 2.0

Technical Outlook

  • USDCAD holds resistance at the 2015 high-day close at 1.2559
  • Break of June ORL at 1.2384 & April/May ML shifts bias lower
  • Resistance & bearish invalidation into 1.24 (bearish invalidation)
  • Support-break targets objectives at 1.2165, the February ML & 1.20
  • RSI reversal sub-60 , break below 50 - bearish
  • Key Event Risk Ahead: US Advanced Retail Sales on tomorrow

USDCAD 30min

USDCAD Breakdown at Initial Support- Short Scalps Favored Sub 1.24

Notes: A clean pitchfork formation off the highs is in focus with today’s low rebounding off the lower median-line parallel at 1.22. Risk for a rebound higher mounts with a break above 1.2286 with our bearish invalidation level set at the highlighted region into 1.2381 where a sliding parallel off the weekly high converges on the 50% retracement & last week’s swing low. Look for interim support at the figure with key near-term support seen at the confluence of the double-top measured move & the 61.8% retracement at 1.2165/71.

Bottom line: we’ll be looking to sell rallies / short-triggers while within this formation with only a breach above the upper MLP / 1.24 invalidating our near-term directional bias. Caution is warranted heading into the U.S. Advanced Retail Sales print tomorrow with the release likely to fuel added volatility in USD crosses. A quarter of the daily ATR yields profit targets of 29-31 pips per scalp.

For updates on this scalp and more setups throughout the week subscribe to SB Trade Desk

Relevant Data Releases

USDCAD Breakdown at Initial Support- Short Scalps Favored Sub 1.24

Other Setups in Play:

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

Follow Michaelon Twitter @MBForex,contact him at mboutros@dailyfx.com or Click Here to be added to his email distribution list

Join Michael for Live Scalping Webinars on Mondays on DailyFXat 12:30 GMT (8:30ET)

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