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
Subscribe
Please try again
EUR/USD
Bullish
Oil - US Crude
Mixed
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
Mixed
GBP/USD
Mixed
USD/JPY
Mixed
More View more
Real Time News
  • Commodities Update: As of 21:00, these are your best and worst performers based on the London trading schedule: Silver: 0.90% Gold: 0.12% Oil - US Crude: 0.09% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/1EMCChMyKN
  • Senate vote was 156 to 140
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 100.00%, while traders in AUD/JPY are at opposite extremes with 67.26%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/9OZ88CUGm1
  • BHP Billiton Q2 copper output 428,100 tons vs Est. 385,000 tons
  • PM Conte survives confidence vote with 154 votes in favour, however, this is short of the absolute majority of 161 votes needed While little reaction in Euro, BTPs will give a signal of sentiment regarding Italian politics at tomorrow's open https://t.co/3CRMwH1GUu
  • The Canadian Dollar has struggled to recapture bullish momentum as FX markets continue to rebalance US Dollar positioning. Get your $USDCAD marketing update from @CVecchioFX here:https://t.co/gyUcAYZRSC https://t.co/DZVFybVVJd
  • 🇺🇸 Overall Net Capital Flows (NOV) Actual: $214.1B Previous: $-11.1B https://www.dailyfx.com/economic-calendar#2021-01-19
  • I do agree their weak EPS might be a knock on their ability to capitalize on the current situation. I suspect many investors will look right past that to highlight the change in net subscribers added which smashed expectations https://t.co/S9fzVqMn4g
  • $NFLX shares jump 8% following corporate earnings https://t.co/j4Kp12jd4P
  • Though Netflix was starting to slip as one of the principal FAANG members, its perceived ability to prosper during the Pandemic shutdown leveraged greater appeal in recent months. This doesn't seem to carry the 'anti-Covid profit' narrative https://t.co/OM1yQKHwq3
USD/CAD Rebound Susceptible to Jump in Canada CPI

USD/CAD Rebound Susceptible to Jump in Canada CPI

Michael Boutros, Strategist

Talking Points

  • USD/CAD rally eyeing initial resistance targets ahead of Canada CPI
  • Updated targets & invalidation levels
  • Click Here to be added to Michael’s email distribution list.

USD/CAD 240min

USDCAD 240min Chart

Technical Outlook: Last week we highlighted a key near-term Fibonacci support confluence at 1.3015/25 with the focus lower sub-1.3180. A final dip into this support barrier earlier this week was followed by a breach of the object weekly opening range high and shifts the focus back to the topside in USDCAD. Yesterday’s rally marked the largest single-day advance in the pair since June 24th (Brexit) and is on pace to post its largest weekly advance since May.

Note that the pair has been trading within the confines of a broad descending pitchfork formation extending off the October & December highs with the lower median-line parallel catching the lows in price this week. If we close at these levels, the pair will have marked an outside weekly reversal off support- the last two times we saw this, prices continued to push higher into the following week before turning over.

The immediate rally is approaching initial resistance at the 61.8% retracement at 1.3377 backed closely by the 50-line / monthly open at 1.3435- both of which could offer more significant kickback. Bottom line, heading into tomorrow’s Canada Consumer Price Index (CPI) release, the risk is for pullback off these levels with the broader focus weighted to the topside while above the May high 1.3188. A breach above the monthly open targets 1.3462 & the median-line confluence at 1.3550.

USD/CAD Rebound Susceptible to Jump in Canada CPI
  • A summary of the DailyFX Speculative Sentiment Index (SSI) shows traders are long USD/CAD- the ratio stands at +1.12 (53% of traders are long)- weak bearish reading
  • Long positions are 24.7% lower than yesterday and 23.6% below levels seen last week
  • Short positions are 20.7% higher than yesterday and a full 37.8% above levels seen last week
  • Open interest is 8.4% lower than yesterday but remains 6.1% above its monthly average
  • The current dynamic off waning long exposure & open interest suggests retail traders are taking profits here & a flip to net short would suggest a larger shift in sentiment is underway.

Relevant Data Releases

USD/CAD Rebound Susceptible to Jump in Canada CPI

Looking for trade ideas? Review DailyFX’s 2017 1Q Projections

Other Setups in Play:

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

Join Michael for Live Weekly Trading Webinars on Mondays on DailyFX at 13:30 GMT (8:30ET)

FollowMichael on Twitter @MBForex or contact him at mboutros@dailyfx.com

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

DISCLOSURES