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.

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
Bearish
Oil - US Crude
Mixed
Wall Street
Bearish
Gold
Bearish
GBP/USD
Bearish
USD/JPY
Mixed
More View more
Real Time News
  • Heads Up:🇯🇵 BoJ Interest Rate Decision due at 03:00 GMT (15min) Expected: -0.1% Previous: -0.1% https://www.dailyfx.com/economic-calendar#2021-06-18
  • the brooding music when they get to Roxxcart in episode 2? enthralling
  • Commodities Update: As of 02:00, these are your best and worst performers based on the London trading schedule: Silver: 1.13% Gold: 0.60% Oil - US Crude: -0.78% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/8rSA2ohup8
  • 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/Yh0PRRRzYl
  • Forex Update: As of 02:00, these are your best and worst performers based on the London trading schedule: 🇬🇧GBP: 0.09% 🇪🇺EUR: 0.08% 🇨🇦CAD: 0.06% 🇨🇭CHF: 0.02% 🇯🇵JPY: 0.01% 🇳🇿NZD: -0.08% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/vbRu3EprVx
  • maybe I’m biased as a former violinist but wow is @filmmusicholt’s score in #Loki unbelievable.
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Gold are long at 83.82%, while traders in France 40 are at opposite extremes with 78.68%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/Ur8BEXEQew
  • Natural gas spot prices have been on the rise, recapturing a key trendline, following the EIA’s Short-Term Energy Outlook. Where can prices head from here? Find out from @FxWestwater here:https://t.co/yK48nZD1ag https://t.co/Rbs94oGSC7
  • USD/CHF Falling Wedge Breakout Nears Target, Trend to Continue? - #USDCHF chart https://t.co/vgrZHTjQnj
  • EUR/USD IG Client Sentiment: Our data shows traders are now at their most net-long EUR/USD since Mar 26 when EUR/USD traded near 1.18. A contrarian view of crowd sentiment points to EUR/USD weakness. https://www.dailyfx.com/sentiment https://t.co/G3PTMBx4s5
Canadian Dollar Price Outlook: USD/CAD Pullback Eyes Breakout Support

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

Michael Boutros, Strategist

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