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
Bullish
Oil - US Crude
Mixed
Wall Street
Mixed
Gold
Bullish
GBP/USD
Bearish
USD/JPY
Mixed
More View more
Real Time News
  • Dollar Index has broken major uptrend support and risks accelerated losses into the December open. Get your $USD technical analysis from @MBForex here:https://t.co/Txo8l8S1f1 https://t.co/YLVzP95JH8
  • The MACD is an indicator that uses exponential moving averages (EMA) to determine trend strength along with entry points based on crossovers. Find out how you can use the MACD as a buy/sell signal here: https://t.co/qxnP99uqTQ https://t.co/tGVqSZ2zK3
  • Support and resistance are the cornerstone of technical analysis, making it the foundation that you build your knowledge on. Build a stronger foundation here: https://t.co/yXLaRpl90I https://t.co/reMoYpqkQO
  • Struggling to define key levels? Floor-Trader Pivots assist traders in identifying areas in a chart where price is likely to approach and can be used to set appropriate targets, while effectively managing risk. Learn how to use this indicator here: https://t.co/Ye4m1FMKUW https://t.co/sqeRL7Rf7u
  • Cyclical and non-cyclical stocks can help diversify a trader’s equity portfolio. Get your guide to understanding these stocks here: https://t.co/h7BKTd2J8N https://t.co/ukOW0dWJxf
  • Beautifully put. https://t.co/0fBsmUH6Pb
  • Gold prices could claw back lost ground ahead of the non-farm payrolls report for November, buoyed by a dovish FOMC, falling real yields and rising inflation expectations. Get your $XAUUSD market update from @DanielGMoss here:https://t.co/3mqut0yQIQ https://t.co/nfyycibwKM
  • Recessions can devastate the economy and disrupt the fortunes of individuals, businesses, and investors. But economic decline in the business cycle is inevitable, and your trading can be defined by how you respond to crisis. learn how to prepare here: https://t.co/e4CnobJCss https://t.co/UWnLJHVPN4
  • Rather than focusing on earning a specific number of pips per day, traders need to focus on what can be controlled. In trading terms this relates to following a strategy perfectly, with no emotion or hesitation. Learn more here: https://t.co/6ZH026QLRN https://t.co/JJIyKh8r1l
  • That if you’re offended by what someone says on Twitter and that ruins your day, you live an extremely lucky life to be able to have that be your biggest problem for the day. https://t.co/H9KQjR3ViK
Canadian Dollar Price Outlook: USD/CAD Pullback Eyes Breakout Support

Canadian Dollar Price Outlook: USD/CAD Pullback Eyes Breakout Support

2019-04-29 18:00:00
Michael Boutros, Strategist
Share:

The Canadian Dollar is down more than 0.5% against the US Dollar from the monthly high with the decline now looking to challenge the origins of last week’s breakout. These are the updated targets and invalidation levels that matter on the USD/CAD charts this week. Review this week’s Strategy Webinar for an in-depth breakdown of this setup and more.

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

USD/CAD Daily Price Chart

USD/CAD Price Chart - US Dollar vs Canadian Dollar - Loonie Daily

Technical Outlook: In my latest USD/CAD Weekly Price Outlook we noted that Loonie, “remains within a range just below a critical resistance confluence at 1.3435/37 and the focus is on a reaction off this mark,” with a topside breach favored. Price registered an intra-week high at 1.3521 before pulling back last week with the decline now approaching this key pivot zone yet again.

Interim support rests back at 1.3435/37 with near-term bullish invalidation at the April opening-range high at 1.3402- a break / close below this threshold would shift the focus back toward monthly open support / 100-day moving average at 1.3338/45. Daily resistance stands with the 78.6% retracement at 1.3537.

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

USD/CAD 120min Price Chart

USD/CAD Price Chart - US Dollar vs Canadian Dollar - Loonie 120minute

Notes: A closer look at price action shows Loonie trading within the confines of an ascending pitchfork formation with the lower parallel further highlighting confluence support at 1.3435/37. A downside break there is needed to keep the short-bias viable targeting 1.3402- look for a bigger reaction there IF reached. Initial resistance steady at 1.3475 with a breach above the median-line needed to mark resumption targeting 1.3537 and the 1.618% extension at 1.3552.

Learn how to Trade with Confidence in our Free Trading Guide

Bottom line: USD/CAD is testing the origins of last week’s breakout and we’re looking for support ahead of 1.34 IF the broader up-trend is to remain viable. From a trading standpoint, a good spot to reduce short-exposure heading into the lower parallel – be on the lookout for possible price exhaustion / long-entries on a love lower. Keep in mind we have the BoE and FOMC interest rate decisions on tap next week.

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 - US Dollar vs Canadian Dollar Positioning- Loonie Price Chart
  • A summary of IG Client Sentiment shows traders are net-short USD/CAD- the ratio stands at -1.85 (35.1% of traders are long) – bullishreading
  • Traders have remained net-short since April 17th; price has moved 0.8% higher since then
  • Long positions are31.4% higher than yesterday and 30.9% higher from last week
  • Short positions are2.9% higher than yesterday and 36.2% 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. Traders are 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 USD/CAD trading bias, from a sentiment standpoint.

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

---

Relevant US / Canada Economic Data Releases

US / Canada 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