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
Mixed
Oil - US Crude
Bearish
Wall Street
Mixed
Gold
Bullish
GBP/USD
Mixed
USD/JPY
Bullish
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
  • WTI crude oil prices fell on Monday after signs showing that OPEC+ members may not reach an agreement to rein production in a Monday meeting. WTI has registered a whopping 36% gain this month through to November 25th, entering overbought territory according to the RSI indicator. https://t.co/UYde6fioQg
  • 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/lXacDkdsla
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 93.91%, while traders in EUR/USD are at opposite extremes with 76.46%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/Fcv9uguJsP
  • #Gold prices challenging key support at the 50% Fib (1763.27) as the RSI registers its most extreme oversold readings since 2018. Gut-check time for #bullion bulls... #XAUUSD https://t.co/H6EU8mN1sW
  • Forex Update: As of 05:00, these are your best and worst performers based on the London trading schedule: 🇯🇵JPY: 0.22% 🇬🇧GBP: 0.19% 🇨🇭CHF: 0.13% 🇪🇺EUR: 0.05% 🇦🇺AUD: 0.01% 🇨🇦CAD: -0.00% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/eIxfGpBn51
  • Indices Update: As of 05:00, these are your best and worst performers based on the London trading schedule: FTSE 100: -0.54% US 500: -0.72% Germany 30: -0.79% France 40: -0.79% Wall Street: -0.88% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/kHZ9KNcOvx
  • 🇯🇵 Housing Starts YoY (OCT) Actual: -8.3% Expected: -9.3% Previous: -9.9% https://www.dailyfx.com/economic-calendar#2020-11-30
  • Heads Up:🇯🇵 Housing Starts YoY (OCT) due at 05:00 GMT (15min) Expected: -9.3% Previous: -9.9% https://www.dailyfx.com/economic-calendar#2020-11-30
  • Learn why dividend stocks are favored by investors and why it might be the right choice for you here:https://t.co/VUsJFHBARb https://t.co/Brit0AFo8e
  • China National Offshore Oil Corp (CNOOC) plunged nearly 10% in Hong Kong on Monday after Trump Administration put it onto export blacklist alongside several other Chinese firms.
USD/CAD Surges Into Resistance- Rally Vulnerable Ahead of Canada CPI

USD/CAD Surges Into Resistance- Rally Vulnerable Ahead of Canada CPI

2018-02-22 16:56:00
Michael Boutros, Strategist
Share:

USD/CAD prices have rallied more than 4% off the monthly lows with the advance now testing a critical resistance barrier we’ve been tracking for weeks now around 1.2723. The advance looks vulnerable heading into tomorrow’s Canada CPI report and the focus is on a possible near-term exhaustion play off these levels.

USD/CAD Daily Price Chart

USD/CAD Price Chart - Daily Timeframe

Technical Outlook: In my USD/CAD Weekly Technical Perspective published earlier this month, we noted that the USD/CAD, “rebound may have further legs near-term but ultimately we’re looking for exhaustion in price on a rally towards the 200-week moving average at 1.2620s and confluence resistance into the December high-week reversal close at 1.2726 (bearish invalidation).

Price is testing this key resistance confluence today at 1.2715/23 where basic slope resistance converges on the 61.8% extension of the February advance and the 200-day moving average. The immediate topside bias is at risk here with a daily close above 1.2777 needed to suggest that a larger breakout is underway. That said, we’re looking to fade strength near-term while below this threshold.

New to Forex Trading? Get started with this Free Beginners Guide

USD/CAD 120min Price Chart

USD/CAD Price Chart - 120min Timeframe

Notes: A closer look at USDCAD price action shows the pair trading within the confines of a near-term ascending Andrew’s pitchfork formation with today’s rally failing at the upper parallel- further highlighting the 1.2715/23 resistance range. Look for interim support at 1.2663 with near-term bullish invalidation now raised to 1.2626.

Why does the average trader lose? Avoid these Mistakes in your trading

Bottom line: Looking to fade strength while below 1.2723 with a break of the lower parallel needed to validate the reversal targeting 1.2797 & the 61.8% retracement at 1.2566. Keep in mind we get the release of Canada CPI (Consumer Price Index) tomorrow with the release likely for fuel added volatility in the Loonie crosses.

For a complete breakdown of Michael’s trading strategy, review his Foundations of Technical Analysis series on Building a Trading Strategy.

USD/CAD IG Client Sentiment

USD/CAD IG Client Sentiment
  • A summary of IG Client Sentiment shows traders are net-long USD/CAD- the ratio stands at +1.28 (56.2% of traders are long) – bearishreading
  • Long positions are 14.2% lower than yesterday and 19.4% higher from last week
  • Short positions are6.2% lower than yesterday and 28.8% lower 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. However, tradersare 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 USDCAD trading bias from a sentiment standpoint.

Relevant USD/CAD Data Releases

USD/CAD Ecnomic Calendar

---

Other Setups in Play

- Written by Michael Boutros, Currency Strategist with DailyFX

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

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