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
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
GBP/USD
Mixed
USD/JPY
Bullish
Gold
Bullish
Oil - US Crude
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
Bitcoin
Mixed
More View more
Real Time News
  • #JPY is cautiously higher against its G10 counterparts, suggesting markets are experiencing a broad risk-off tilt after the rejection of Boris Johnson's #Brexit timetable which has now put everything "in limbo" to quote Speaker John Bercow.
  • RT @Amena__Bakr: Additional Saudi troops and missile defense systems have been installed in eastern terminals after last month's attacks. h…
  • Copper is a highly tradeable commodity that has clear chart patterns. Find out how you can create efficient #copper trading strategies here: https://t.co/747cqCh2HE #CommoditieswithDailyFX https://t.co/idJU04z9TA
  • - #USDollar, Japanese #Yen may rise if corporate earnings spook markets - Weaker earnings from industrial giants may highlight toll of #tradewar - China WTO complaint against US could undermine cross-pacific talks https://www.dailyfx.com/forex/market_alert/2019/10/23/US-Dollar-JPY-May-Rise-if-Q3-Earnings-Show-Wounds-from-Trade-War.html
  • LIVE NOW: In this session, Currency Analyst @ddubrovskyFX discusses traders' positioning as a key element of market analysis to determine the prevailing and future price trends. https://www.dailyfx.com/webinars/998956395?utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
  • About to start in a few minutes, will be covering positioning in the British Pound amid the latest #Brexit developments and more! Join below $GBPUSD https://t.co/FQqd59VbCL
  • The $GBP swung wildly following a series of votes that are critical in the #Brexit proceedings. Get your market update from @PeterHanksFX here:https://t.co/kEb6EeUdMu https://t.co/xceWoNxSXg
  • LIVE IN 30 MIN: In this session, Currency Analyst @ddubrovskyFX discusses traders' positioning as a key element of market analysis to determine the prevailing and future price trends. https://www.dailyfx.com/webinars/998956395?utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
  • (Asia Pacific AM Briefing) GBP/USD Rate Sinks as Brexit Limbo Opens the Door to Yen Strength $GBPUSD #Brexit #Yen - https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/asia_am_briefing/2019/10/22/GBPUSD-Rate-Sinks-as-Brexit-Limbo-Opens-the-Door-to-Yen-Strength.html?CHID=9&QPID=917702 https://t.co/oyeoDOXO1I
  • Sneak-peak of the latest US Dollar Price Volatility Report, which brings you up to speed on everything $GBPUSD and #Brexit. Implied volatility and trading range table for major USD pairs included as always. Link to Full Analysis: https://www.dailyfx.com/forex/fundamental/us_dollar_index/usd_trading_today/2019/10/22/us-dollar-price-volatility-report-gbp-to-usd-in-brexit-limbo.html https://t.co/dOG8Hkg9fe
USD/CAD Price Outlook: Rally Stalls at Critical Resistance Zone

USD/CAD Price Outlook: Rally Stalls at Critical Resistance Zone

2019-01-03 17:00:00
Michael Boutros, Technical Strategist
Share:

The US Dollar is testing a critical resistance confluence against the Canadian Dollar and leaves the broader uptrend vulnerable into the start of the year. These are the updated targets and invalidation levels that matter on the USD/USD charts.

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

USD/CAD Daily Price Chart

USD/CAD Daily Price Chart

Technical Outlook: In my latest USD/CAD Weekly Technical Outlook we noted that the price breakout was, “accelerating towards the next major confluence resistance zone at the 61.8% retracement of the 2016 decline / 2017 high-week close at 1.3647/86.” Note that the 61.8% slope line of the broader 2017 ascending pitchfork formation also converges on this region into the start of the month and further highlights its technical significance.

Interim support rests with the median-line (currently ~1.3450s) backed closely by the October channel support / 2017 open at 1.3435- a break / close below this region would suggest that a larger price correction may be underway with such a scenario targeting the 38.2% retracement at 1.3328.

Learn how to Trade with Confidence in our Free Trading Guide

USD/CAD 240min Price Chart

USD/CAD 240min Price Chart

Notes: A closer look at price action highlights the October channel with USD/CAD carving out a weekly opening-range just below slope resistance. A break below 1.3565 would risk a deeper pullback here targeting the lower parallels at ~1.35 and 1.3535- look for a bigger reaction there for guidance IF reached. A breach above channel resistance would be needed to mark resumption of the broader uptrend targeting subsequent topside objectives at 1.3793.

Even the most seasoned traders need a reminder every now and then- Avoid these Mistakes in your trading

Bottom line: The USD/CAD rally is vulnerable near-term while below 1.3685. From a trading standpoint, I’ll favor fading weakness while below this region targeting a move towards the lower parallel. Ultimately, a larger setback may offer more favorable long-entries closer to daily slope support.

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

USD/CAD Trader Sentiment

USD/CAD Trader Sentiment
  • A summary of IG Client Sentiment shows traders are net-short USD/CAD - the ratio stands at -----5.64 (15.1% of traders are long) – bullishreading
  • Traders have remained net-short since October 9th; price has moved 4.2% higher since then
  • Long positions are15.6% higher than yesterday and 5.7% higher from last week
  • Short positions are 0.8% lower than yesterday and 2.0% higher from last week
  • We typically take a contrarian view to crowd sentiment, and the fact traders are net-short suggests USD/CAD prices may continue to rise. Yet traders are less net-short than yesterday and compared with last week. Recent changes in sentiment warn that the current USD/CAD price trend may soon reverse lower despite the fact traders remain net-short.

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

---

Relevant USD/CAD Data Releases

USD/CAD Economic Calendar

Economic Calendar - latest economic developments and upcoming event risk. Learn more about how we Trade the News in our Free Guide!

Active Trade Setups

- Written by Michael Boutros, Currency Strategist with DailyFX

Follow Michael on Twitter @MBForex

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

DISCLOSURES

News & Analysis at your fingertips.