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
Bearish
GBP/USD
Mixed
USD/JPY
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
Gold
Bullish
Oil - US Crude
Bearish
Bitcoin
Bearish
More View more
Real Time News
  • The $USD may fall against the Swedish Krona and Norwegian Krone if commentary from officials at the Davos forum uplift market mood and pressure haven-linked currencies. Get your market update from @ZabelinDimitri here:https://t.co/SZAG0yMu3d https://t.co/cBZj5tC0Ny
  • The $NZD is inching toward support guiding gains in the fourth quarter of 2019. A break may set the stage for long-term bearish trend resumption. Get your market update from @IlyaSpivak here:https://t.co/bnlx4RJ8oV https://t.co/d60YziMYnO
  • $Gld prices are poised to mark the highest weekly-close in nearly seven-years, but the bulls aren’t in the clear yet. Here are the XAU/USD levels that matter next week. Get your $XAUUSD technical analysis from @MBForex here: https://t.co/yeTH6HwncQ https://t.co/6sIpxTSNaX
  • Video https://t.co/PZeqhLumSR
  • The $USD rose as the Singapore Dollar, Malaysian Ringgit and Philippine Peso fell on coronavirus fears. What is the technical outlook for USD/IDR, USD/SGD, USD/MYR and USD/PHP? Find out from @ddubrovskyFX here: https://t.co/G3GmyOe4IT https://t.co/iq7ajeP6iv
  • RT @ddubrovskyFX: The Indian Rupee 2020 outlook is bearish as India faces stagflation risk amid rising onion and crude oil prices. USD/INR…
  • Bloomberg just reported that Australia confirmed its first #coronavirus case
  • Monday open volatility? https://t.co/0ElZtSfHsz
  • China confirmed 444 new cases of the #coronavirus -BBG #SP500 #Yen #USD
  • The #Euro has broken four-month support guiding a recovery against the US Dollar to suggest that the long-term downtrend has been re-engaged. Get your market update from @IlyaSpivak here: https://t.co/FHiGQZ6zvV https://t.co/2lGDCmuGab
USD/CAD: Is a Low in Place? US, Canada GDP on Deck

USD/CAD: Is a Low in Place? US, Canada GDP on Deck

2017-07-27 18:02:00
Michael Boutros, Technical Strategist
Share:

To receive Michael’s analysis directly via email, please SIGN UP HERE

Talking Points

USD/CAD Daily Chart

USD/CAD Daily Chart

Technical Outlook: USD/CAD reversed sharply today off confluence support at 1.2415 (low was 1.2413) – this level is defined by a long-term 61.8% ext of the broader decline off the 2016 high and converges on a parallel support extending off the 9/21 swing low (red). Note that daily momentum is also attempting to break back above the 30-mark and highlights the risk for a near-term recovery in price.

Initial resistance is eyed at the medina-line (currently around the 1.26-handle) and is backed by 1.2723/39. A breach there would be needed to suggest a more significant recovery is underway. If price breaks lower from here, there’s not really much until the 50% retracement at 1.2056.

Learn more about Pitchfork & Median-line formations in Michael’s three-part trading series

USD/CAD 240min Chart

USD/CAD 240min Chart

Notes: Price has continued to trade within the confines of this near-term descending slope formation with former slope-support further highlighting near-term resistance at Friday’s high ~ 1.2609. Look for a reaction there with a breach higher targeting 1.2680 & confluence resistance at 1.2739 (area of interest for possible short-entries).

From a trading standpoint, I’ll be looking for a breach of the weekly opening range high to validate this near-term reversal in price targeting the highlighted resistance objectives. Keep in mind we have the release of both U.S. & Canadian GDP figures tomorrow and the releases is likely to fuel increased volatility in their respective crosses.

USD/CAD: Is a Low in Place? US, Canada GDP on DeckUSD/CAD: Is a Low in Place? US, Canada GDP on DeckUSD/CAD IG Client Sentiment
  • A summary of IG Client Sentimentshows traders are net-long USD/CAD- the ratio stands at +2.86 (74.1% of traders are long) – bearishreading
  • Retail traders have been net-long since June 7th- Price has moved 7.2% lower since
  • Long positions are 17.9% lower than yesterday but 8.8% higher from last week
  • Short positions are 3.3% lower from yesterday and 0.4% lower from last week
  • We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests USD/CAD prices may continue to fall. That said, retail is less net-long than yesterday but more net-long from last week and the combination of current positioning and recent changes gives us a further mixed near-term trading bias from a sentiment standpoint.

What to look for in USD/CAD retail positioning - Click here to learn more about sentiment!

---

Relevant Data Releases

USD/CAD Economic Docket

Join Michael on Friday for his bi-weekly Live Webinar on the Foundations of Technical Analysis- Register for Free Here!

Other Setups in Play:

- Written by Michael Boutros, Currency Strategist with DailyFX

Follow Michael 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

News & Analysis at your fingertips.