USD/CAD Contained by Clear Price Levels Ahead of Canadian Employment
- USD/CAD Shorts-scalps favored sub 1.2840 ahead of Canadian jobs data
- Updated targets & invalidation
Chart prepared by Michael Boutros
Technical Outlook:Earlier this week I highlighted this technical formation in USDCAD with the pair testing near-term resistance today at the median-line extending off the May high. Heading into tomorrow’s Canadian employment report, the focus remains lower while below confluence resistance into 1.2831/40 where the October low converges on a pair of downward sloping median-lines.
From a trading standpoint, I would be looking to sell dollar-strength with interim support targets seen at the 76.4% retracement at 1.2631 backed by 1.2591 & the lower parallel / 1.2540- Note that this converges on a long-dated slope line extending off the 2002 high and if broken would likely see accelerated losses for the pair. A breach above 1.2910/22 is needed to invalidate the broader short-bias. Continue tracking this setup and more throughout the week- Subscribe to SB Trade Deskand take advantage of the DailyFX New Subscriber Discount.
Avoid the pitfalls of near-term trading strategies by steering clear of classic mistakes. Review these principles in the "Traits of SuccessfulTraders” series.
- A summary of the DailyFX Speculative Sentiment Index (SSI)shows traders are net long USDCAD- the ratio stands at +1.57(61% of traders are long)-bearishreading
- Yesterday the ratio was +1.56; Long positions are 3.3% lower than yesterday and a full 20% above levels seen last week
- Traders have remained net long since May 25th – (USDCAD price action topped on 5/24)
- Open interest is 3.7% lower than yesterday and 3.1% above its monthly average
- The recent build in long-positioning suggests the downside bias remains in focus and heading into tomorrow’s Canadian employment report.
Help fine-tune your entries, click here to learn more about the DailyFX Grid Sight Index (GSI)
Relevant Data Releases This Week
Other Setups in Play:
- NZD/USD: RBNZ Breakout Approaching Initial Resistance Targets
- USD/CAD In Free-Fall; Critical Support 1.2540
- EUR/GBP Off Resistance- Broader Outlook Constructive Above 7645
- RBA: Buy the Rumor, Sell the News? AUD/USD Support at 2016 Open
- Webinar: USDOLLAR Bearish Sub 11902 Post-NFP; RBA, RBNZ on Tap
Looking for more trade ideas? Review DailyFX’s Top Trading Opportunity of 2016
---Written by Michael Boutros, Currency Strategist with DailyFX
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.