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
Bearish
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
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
GBP/USD
Bearish
USD/JPY
Bullish
More View more
Real Time News
  • The US Dollar could gain as it forms bullish technical formations against the Singapore Dollar and Malaysian Ringgit. USD/PHP may have bottomed, will USD/IDR rise next? Find out from @ddubrovskyFX here:https://t.co/3UIKmbLIvD https://t.co/PY2YyH4vkQ
  • The Indian Rupee may be at risk to the US Dollar as USD/INR attempts to refocus to the upside. This is as the Nifty 50, India’s benchmark stock index, could fall further. Get your $USDINR market update from @ddubrovskyFX here:https://t.co/3wsYlSxd26 https://t.co/z2qB9p8IgX
  • A proxy of #EmergingMarket capital flows hit its lowest since July, falling with the #SP500 after some divergence This is as #USD gained against its developing FX counterparts, highlighting potential risk of a spillover outwards Stay tuned for next week's #ASEAN fundy outlook! https://t.co/kAvpnb0EXO
  • 4 consecutive down weeks for the #SP500, last matched over a year ago #Fed balance sheet continues to gain very cautiously, now at its highest since the middle of June. Still, at slower pace than last week Focus shifts to US fiscal stimulus next week in the House of Reps https://t.co/f8zpSILm86
  • #Gold prices have broken lower and while the broader technical structure is constructive, the risk remains for a deeper correction before resumption. Get your $XAUUSD technical analysis from @MBForex here: https://t.co/7p3jPx6nQd https://t.co/nnCSdt6OV5
  • Forex Update: As of 20:00, these are your best and worst performers based on the London trading schedule: 🇬🇧GBP: 0.00% 🇳🇿NZD: -0.02% 🇯🇵JPY: -0.15% 🇨🇭CHF: -0.23% 🇦🇺AUD: -0.25% 🇪🇺EUR: -0.33% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/O8Qb7OHZza
  • Commodities Update: As of 20:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: -0.30% Gold: -0.33% Silver: -0.92% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/lEALo4Z1M9
  • The S&P 500 breakdown is testing the first major zone of support and we’re looking for a reaction. Get your S&P500 technical analysis from @MBForex here:https://t.co/JrTNmQ5c7g https://t.co/D79T1134P9
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.29%, while traders in EUR/GBP are at opposite extremes with 65.04%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/lzTHuIgzFQ
  • US Equities Update (Friday Close): $DJI +1.34% $SPX +1.60% $NDX +2.34% $RUT +1.59% $VIX -7.93%
USD/CAD in Free Fall: 9-Days Down Ahead of Canada CPI, Retail Sales

USD/CAD in Free Fall: 9-Days Down Ahead of Canada CPI, Retail Sales

2016-08-18 18:10:00
Michael Boutros, Strategist
Share:

Talking Points

  • USD/CAD holding within bearish formation ahead of CAD CPI, Retail Sales
  • Updated targets & invalidation levels

USDCAD 60min

USD/CAD in Free Fall: 9-Days Down Ahead of Canada CPI, Retail Sales

Chart Created Using TradingView

Technical Outlook: USDCAD continues to trade within the confines of a well-defined descending channel formation off last week’s high with the decline now approaching initial support at the key 61.8% retracement of the advance off the 2016 low at 1.2764. Heading into tomorrow morning’s Canadian Consumer Price Index (CPI) & retail sales release, the focus remains lower while below channel resistance / 1.2832 with broader bearish invalidation eyed at the 1.2924 resistance confluence.

A break lower targets the 2016 low-day closer at 1.2723 & the June low-day close at 1.2692 – both areas of interest for possible short exhaustion / long-entries. Keep in mind that today will mark the ninth consecutive day of declines- previous instances have seen near-term interruptions before continuing lower. From a trading standpoint, I would be looking to fade strength while below 1.2830, ultimately looking for long-entries lower down into structural support. For the complete setup and to continue tracking this trade& 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.

USD/CAD in Free Fall: 9-Days Down Ahead of Canada CPI, Retail Sales
  • A summary of the DailyFX Speculative Sentiment Index (SSI)shows traders are net long USDCAD- the ratio stands at +1.85 (65% of traders are long)- bearish reading
  • Yesterday the ratio was 1.57. Long positions are 13.9% higher than yesterday and 21.3% above levels seen last week.
  • Open interest is 7.1% higher than yesterday and 9.5% above its monthly average.
  • Current retail positioning keeps the focus lower for now and we’ll be looking for a build in bullish sentiment heading into fresh monthly lows for signs that the short-side bias may be waning.

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

Relevant Data Releases This Week

USD/CAD in Free Fall: 9-Days Down Ahead of Canada CPI, Retail Sales

Other Setups in Play:

Looking for more trade ideas? Review DailyFX’s Top Trading Opportunity of 2016

---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