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
Wall Street
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
Real Time News
  • A currency carry trade involves borrowing a low-yielding currency in order to buy a higher yielding currency in an attempt to profit from the interest rate differential. Find out if the carry trade suits your trading style here: https://t.co/7t4BzmLg8w https://t.co/v6RGICQvge
  • Get your snapshot update of the of top level exchanges and key index performance from around the globe here: https://t.co/d8Re5anlG5 https://t.co/rws9LHJV3E
  • RT @FxWestwater: Japanese Yen Forecast: JPY Crosses Eye BoJ, CPI as Haven Flows Bolster Yen Strength Link: https://www.dailyfx.com/forex/fundamental/forecast/weekly/jpy/2021/09/18/Japanese-Yen-Forecast-JPY-Crosses-Eye-BoJ-CPI-as-Haven-Flows-Bolster-Yen-Strength.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Westwater&utm_campaign=twr https:/…
  • Traders utilize varying time frames to speculate in the forex market. The two most common are long- and short-term-time frames which transmits through to trend and trigger charts. Learn more about time-frame analysis here: https://t.co/9S5tXIs3SX https://t.co/FVisZuTP6M
  • Stocks appear to be in a corrective phase but could get put to the test; levels and lines to watch in the days ahead. Get your weekly equities forecast from @PaulRobinsonFX here: https://t.co/H1BaTlIHjY https://t.co/zP3mjfslSD
  • Currency exchange rates are impacted by several factors. Are different world leaders a contributing factor? Find out here: https://t.co/4jsORznRTE https://t.co/Of1thU4zXw
  • Further your forex knowledge and gain insights from our expert analysts on AUD with our free guide, available today: https://t.co/p2FhEwym1E https://t.co/MjiYB85TSF
  • Many people are attracted to forex trading due to the amount of leverage that brokers provide. Leverage allows traders to gain more exposure in financial markets than what they are required to pay for. Learn about FX leverage here: https://t.co/BdgFmkRxVw https://t.co/fIO9TP7D62
  • Trading Forex is not a shortcut to instant wealth, excessive leverage can magnify losses, and sentiment is a powerful indicator. Learn about these principles in depth here: https://t.co/lZFM8youtX https://t.co/Xja8DHUqlH
  • Risk management is one of the most important aspects of successful trading, but is often overlooked. What are some basic principles or risk management? Find out from @PaulRobinsonFX here: https://t.co/IsnpfJhp91 https://t.co/9po5Lg4vnR
USD/CAD Rally to Face Canada GDP- Support at 1.2965

USD/CAD Rally to Face Canada GDP- Support at 1.2965

Michael Boutros, Strategist

Talking Points

  • USD/CAD within well-defined ascending channel ahead of key Canada data
  • Updated targets & invalidation levels

USDCAD 240min

USD/CAD Rally to Face Canada GDP- Support at 1.2965

Chart Created Using TradingView

Technical Outlook: We’ve been tracking this USDCAD setup for the past few weeks on SB Trade Desk and the pair is now eyeing near-term resistance head of tomorrow’s 2Q GDP release. The pair is trading within the confines of a newly identified ascending pitchfork formation extending off the monthly lows with the immediate long-bias vulnerable near-term while below the upper median-line parallel extending off the monthly high (grey).

Initial support is eyed at 1.3067 backed by the monthly open at 1.3029 & the weekly open at 1.2991. Key support & broader bullish invalidation rests at the highlighted 1.2965 confluence zone. Bottom line: the trade remains constructive while within this formation (looking to buy pullbacks) with a breach above median-line resistance targeting 1.3149/57 & the July high-day close at 1.3186.

Consensus estimates are calling for an annualized contraction of 1.5% following the 2.4% expansion in the first-quarter of 2016. With markets already anticipating a weak print on account of the Alberta fires, a better-than-expected GDP figure may spark a bullish reaction in the Canadian dollar, which could offer favorable USD/CAD long entries. Keep in mind we have Non-Farm Payrolls on tap ahead of an extended holiday weekend in the U.S. For the complete setup and to continue tracking this trade & more throughout the week- Subscribe to SB Trade Desk.

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 Rally to Face Canada GDP- Support at 1.2965
  • A summary of the DailyFX Speculative Sentiment Index (SSI) shows traders are net long USDCAD- the ratio stands at +1.04 (51% of traders are long)- weak bearish reading
  • Yesterday the ratio was at 1.17% - Short positions are 7.8% higher than yesterday and 32.2% above levels seen last week
  • Open interest is 1.3% higher than yesterday and 9.0% above its monthly average.
  • Although SSI will offer limited guidance within the current price range, there appears to be a broader shift in retail positioning with long positions 12.6% lower from the previous week (suggesting profit taking) while shorts are 32.2% higher during the same period.
  • Looking back over the last few months, it’s worth noting that retail crowds have actually been pretty decent in calling the turns within this range so use caution and don’t chase this into the monthly close.

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

Relevant Data Releases This Week

USD/CAD Rally to Face Canada GDP- Support at 1.2965

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