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
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
USD/JPY
Mixed
Gold
Mixed
Oil - US Crude
Mixed
Bitcoin
Mixed
More View more
Notice

DailyFX PLUS Content Now Available Freely to all DailyFX Users

Real Time News
  • The US Dollar remains in consolidation mode against the Philippine Peso and Indian Rupee. Will the Singapore Dollar weaken as $USDSGD rising support holds ahead? Find out from @ddubrovskyFX here: https://t.co/HZ8Loqj3Ey https://t.co/6PCFkdj3ka
  • Follow @DailyFXedu for your regular #webinar updates with @DailyFX analysts and catch up on the webinars you missed. https://t.co/Da10QUg9r1
  • Greed has proven to be a hindrance more than assistance for traders. How does greed lead to #FOMOintrading? Find out from @RichardSnowFX here: https://t.co/aT8TZjlFqP https://t.co/Le8Qx6OOwV
  • $GBPUSD at the moment break-even straddles = 152pips meaning that for option traders to realize gains, the spot price must see a move greater than 152pips. Get your market update from @JMcQueenFX here: https://t.co/odj2lLRrGf https://t.co/RXCBwHGluG
  • $EURGBP has fallen over 6% since August and is now rapidly approaching a critical support level not reached since May. Will a break below accelerate the aggressive selloff? Find out from @ZabelinDimitri here: https://t.co/CBM8Fg7vM0 https://t.co/0yDnEpzQqR
  • The #Euro is struggling for direction against the US Dollar but the near-term downtrend guiding it lower since late June remains firmly intact. Where is $EURUSD heading? Get your technical analysis from @IlyaSpivak here: https://t.co/us6AINmuoe https://t.co/J4hQtyprYf
  • $DXY & $SPX500 hold steady after #FED rate cut. Get your update from @JohnKicklighter here: https://t.co/vqXlKCMDYA
  • Dow Jones & Dax 30 levels to watch ahead of the fed from @PeterHanksFX here: https://t.co/iUIrsygKz2
  • The politics of the US and UK may be starkly divided but their grip on the vast, $6.6 trillion global foreign exchange trade seems as tight as ever. Get your market update from @DavidCottleFX here:https://t.co/xTKHOvrIqg https://t.co/vtHhdnF82Q
  • How can confidence in trading help with avoiding #FOMOintrading? Find out from @WVenketas here: https://t.co/MY7j9ISn4S https://t.co/n7XwfiDZz2
USD/CAD Rally Reverses at Critical Resistance Ahead of Canada CPI

USD/CAD Rally Reverses at Critical Resistance Ahead of Canada CPI

2018-03-21 16:30:00
Michael Boutros, Technical Strategist
Share:

The Canadian Dollar has finally caught a bid with USD/CAD reversing sharply off key confluence resistance this week. The pair remains vulnerable while below this threshold with the pullback in price now approaching near-term uptrend support-we’re looking for further evidence that a more significant exhaustion high may be in place.

USD/CAD Daily Price Chart

USD/CAD Price Chart - Daily Timeframe

Technical Outlook: USD/CAD turned from a key resistance confluence this week at 1.3103/32- a region where the 100% extension of the September advance and the 61.8% retracement of the 2017 decline converges on the upper median-line parallel of the ascending pitchfork formation. Note that daily RSI marked clear divergence into this high with a support trigger pending.

Near-term support rests with the 2017 January low at 1.2968 with a daily close below needed to suggest that a more significant high may be in place. Such a scenario would target the 2012 trendline which converges on the monthly opening range lows t 1.2803. A topside breach still has to contend with longer-term slope resistance just shy of 1.32.

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

USD/CAD 240min Price Chart

USD/CAD Price Chart - 240min Timeframe

Notes: A closer look at USD/CAD price action shows the pair trading within the confines of a near-term ascending channel formation extending off the February lows. The near-term focus remains lower while below 1.3132 with subsequent support targets eyed at 1.2918- look for a reaction there. A break keeps the short-bias in play targeting the monthly open at 1.2829 backed closely by 1.2789.

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

Bottom line: USD/CAD turned from critical confluence resistance this week and while the immediate focus is lower, we’ll be looking for a break of this bullish formation to validate a larger reversal in price. From a trading standpoint, I’ll favor fading strength while below the upper parallel. Keep in mind that we still have the release of the FOMC interest rate decision later today with Canada CPI on tap on Friday.

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 Client Sentiment
  • A summary of IG Client Sentiment shows traders are net-short USDCAD- the ratio stands at -1.6 (39.1% of traders are long) – weak bullishreading
  • Traders have remained net-short since Mar 1st; price has moved 1.0% higher since then
  • Long positions are 29.0% higher than yesterday and 6.0% higher from last week
  • Short positions are13.8% lower than yesterday but 20.9% higher from last week
  • We typically take a contrarian view to crowd sentiment, and the fact traders are net-short suggests USDCAD prices may continue to rise. However, retail is less net-short than yesterday but more net-short from last week and the combination of current positioning and recent changes gives us a further mixed USDCAD trading bias from a sentiment standpoint.

See how shifts in USD/CAD retail positioning are impacting trend- Learn more about sentiment!

---

Relevant Economic Data Releases

USD/CAD Economic Calendar

Other Setups in Play

- Written by Michael Boutros, Currency Strategist with DailyFX

To receive Michael’s analysis directly, please sign-upto his email distribution list

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

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

DISCLOSURES

News & Analysis at your fingertips.