Skip to Content
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.

Free Trading Guides
Subscribe
Please try again
Select

Live Webinar Events

0

Economic Calendar Events

0

Notify me about

Live Webinar Events
Economic Calendar Events

H

High

M

Medium

L

Low
More View More
USD/CAD Rally Eyes Key Resistance Targets

USD/CAD Rally Eyes Key Resistance Targets

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

USD/CAD Daily Chart

USD/CAD Price Chart- Daily Timeframe

Technical Outlook: USDCAD rebounded just ahead of a key confluence support zone early this month with the rally now approaching key regions of interest for near-term resistance / short entries at 1.2416/20 & 1.2481-1.2504. Initial support now rests with the median-line parallel (red) currently ~1.23 with a close below the yearly low-day close at 1.2156 needed to validate resumption of the broader downtrend.

New to Forex? Get started with this Free Beginners Guide

USD/CAD 240min

USD/CAD Price Chart - 240min Timeframe

Notes:A closer look at price action highlights further highlights the 1.2416/20 resistance zone- a region defined by the 50% retracement of the August decline and the 61.8% extension of the 2016 decline. Note that the 2012 trendline support (daily chart) also converges on this region. A breach above this zone risks a run into the monthly open at 1.2481 backed closely by our broader bearish invalidation level at 1.2504- both levels of interest for short-entries.

Look for a break below the weekly opening-range lows at 1.2313 to validate the reversal with such a scenario targeting basic trendline support / 61.8% retracement at the 1.22-handle. Bottom line, although broader USD strength is a concern, from a trading standpoint, I’llbe on the lookout for exhaustion up here while below 1.25.

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

USD/CAD IG Client Sentiment
  • A summary of IG Client Sentiment shows traders are net-long USDCAD- the ratio stands at +1.63 (62.0% of traders are long) – bearishreading
  • Retail has been net-long since Jun 7th; price has moved 8.4% lower since then
  • Long positions are 5.5% higher than yesterday and 9.4% lower from last week
  • Short positions are 7.1% higher than yesterday and 30.3% higher from last week
  • We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests USDCAD prices may continue to fall. Yet traders are less net-long than yesterday and compared with last week. Recent changes in sentiment warn that the current USDCAD price trend may soon reverse higher despite the fact traders remain net-long.

See how shifts in USD/CAD retail positioning are impacting trend- Click here to learn more about sentiment!

---

Relevant Data Releases

USD/CAD Economic Calendar

Check out this week’s DailyFX Webinar Schedule

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