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
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
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
Gold
Bearish
GBP/USD
Mixed
USD/JPY
Mixed
More View more
USD/CAD In Free-Fall; Critical Support 1.2540

USD/CAD In Free-Fall; Critical Support 1.2540

2016-06-08 17:35:00
Michael Boutros, Strategist
Share:
  • USDCAD breakdown targeting key support
  • Updated targets & invalidation levels

USDCAD Daily

USD/CAD In Free-Fall; Critical Support 1.2540

Chart prepared by Michael Boutros

Technical Outlook: We’ve been tracking this setup on SB since the break below key confluence support at 1.2977/86 last week. The immediate focus is weighted to the downside with a critical support range at 1.2511/37 coming into view as we head towards Friday’s Canadian employment report. This region is defined by the 23.6% retracement of the 2016 range, the May 2015 advance and a long-dated trendline originating off the 2006 lows- an area of interest for exhaustion / long-entries. Near-term resistance stands at the October low at 1.2831 with our broader bearish invalidation level at 1.2977/86.

Avoid the pitfalls of near-term trading strategies by steering clear of classic mistakes. Review these principles in the "Traits of SuccessfulTraders” series.

USDCAD 30min

USD/CAD In Free-Fall; Critical Support 1.2540

Notes: The pair has been trading within the confines of a well-defined descending pitchfork formation with the exchange rate briefly dipping below the 1.618% extension at 1.2694 in London trade. The immediate risk is for some recovery here but bias remains tilted to the downside near-term while below the median-line. Subsequent support objectives are eyed at 1.2631, 1.2592 & the 88.6% retracement at 1.2543.

Interim resistance stands at 1.2757 backed 1.2831 & 1.2910. Bottom line: looking lower while within this formation with a drop into key support likely to offer more favorable long-entries. A quarter of the daily average true range (ATR) yields profit targets of 26-30 pips per scalp. Added caution is warranted heading into the close of the week with CAD labor figures & the University of Michigan confidence surveys likely to fuel increased volatility in USD & CAD crosses. Continue tracking this setup and more throughout the week- Subscribe to SB Trade Desk and take advantage of the DailyFX New Subscriber Discount.

Help fine-tune your entries, click here to learn more about the DailyFX Grid Sight Index (GSI)

Relevant Data Releases

USD/CAD In Free-Fall; Critical Support 1.2540

Other Setups in Play:

.

Looking for trade ideas? Review DailyFX’s 2016 2Q Projections!

---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 DailyFX and Tuesday, Wednesday & Thursday’s on SB Trade Desk at 12:30 GMT (8:30ET)

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

DISCLOSURES

News & Analysis at your fingertips.