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
GBP/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
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
Gold
Mixed
Oil - US Crude
Mixed
Bitcoin
Bullish
More View more
Real Time News
  • Currency markets may be battered by breakneck volatility if a slowdown in global economic growth triggers a collapse in the fragile market for collateralized loan obligations (CLOs). Get your market update from @ZabelinDimitri here:https://t.co/KfjjtaXs7b https://t.co/sWeSlv33pb
  • The #Dow Jones and #Nasdaq 100 will await key earnings from some of the world’s largest manufacturers and tech companies while the #DAX grapples with freshly-imposed tariffs. Get your equities market update from @PeterHanksFX Here: https://t.co/u2lG19JFt3 https://t.co/OHs4rQEH7T
  • Crude #oil prices are consolidating above a key support zone we’ve been tracking for more-than three months now. Get your market update from @MBForex here: https://t.co/XaACvEpLG4 #OOTT https://t.co/XjmjUt4Par
  • Why trade with Bollinger Bands®? Find out as a day trader, how you can use it to your advantage:https://t.co/dwODDDSsFi @WVenketas https://t.co/SYduJ5k9mL
  • As the global economy continues to contract, the risk of geopolitical threats undermining financial and economic stability are rising, leaving the door open to violent volatility. Get your market update from @ZabelinDimitri here:https://t.co/2HEzqPobvA https://t.co/k13SwJmbRm
  • RT @IGSquawk: We're currently pricing #GBPUSD at 1.2852 and #FTSE at 7129.2 That's a drop of 1.18% from Fridays close for GBPUSD and 0.22%…
  • #DidYouKnow a #Doji candlestick signals market indecision and the potential for a change in direction. What are the top five types of Doji candlesticks? Find out: https://t.co/c51s3IBcEu https://t.co/K6W9X4v8XD
  • The $NZD may be carving out a near-term bottom against its US counterpart but scope for gains seems limited within a broader downtrend. Get your technical analysis from @IlyaSpivak here: https://t.co/7bsVuSyWMn https://t.co/DsmNYKk8v3
  • Can you trade with the joy of missing out (#JOMO)? Find out how you can turn your #FOMOintrading to JOMO here: https://t.co/G5H26NXZQe https://t.co/pVdKUPzvmk
  • RT @PaulBrandITV: It’s likely that this will end up in court on Monday. The case in the Scottish courts may well consider that this doesn’t…
Canadian Dollar Price Outlook: Loonie Gains Slam USD/CAD into Support

Canadian Dollar Price Outlook: Loonie Gains Slam USD/CAD into Support

2019-06-24 17:00:00
Michael Boutros, Technical Strategist
Share:

The Canadian Dollar is up more than 2.7% against the US Dollar since the late-May high in USD/CAD with price now testing near-term downtrend support. These are the updated targets and invalidation levels that matter on the USD/CAD charts into the close of the month. 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 Price Chart - Loonie Daily

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

Technical Outlook: In my latest Canadian Dollar Price Outlook we noted that the USD/CAD recovery was approaching key topside resistance objectives at the, “1.3435/37 pivot zone with trendline confluence just higher around ~1.3460s – we’re looking for possible exhaustion off one of these two zones.” Price registered a high at 1.3432 before posting an outside-day reversal lower on the back of the FOMC interest rate decision.

The decline has now taken out the monthly opening-range lows with price now responding to confluence support at 1.3175 – a region defined by the lower median-line parallel and the 78.6% retracement of the late-January advance. A daily close below this threshold is needed to mark resumption targeting more significant support at the yearly low-day close / 100% extension at 1.3105/23 – look for a bigger reaction there IF reached.

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

USD/CAD Price Chart - Loonie 120min

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

Notes: A closer look at price action shows Loonie trading within the confines of a descending pitchfork formation extending off the May highs with USD/CAD in consolidation just above the lower parallel. Initial resistance stands at 1.3238 backed by 1.3258 with bearish invalidation at the median-line (currently ~1.3280s).

Learn how to Trade with Confidence in our Free Trading Guide

Bottom line: The broader focus remains weighted to the downside in USD/CAD on the back of last week’s reversal – that said, the decline is now testing initial downtrend support. A good place to reduce short-exposure / lower protective stops. I’ll favor fading strength while below the median-line targeting a test of the 1.3105/23 support zone. Review my latest Canadian Dollar Weekly Price Outlook for a longer-term technical picture on USD/CAD

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 Price Chart - Loonie Outlook
  • A summary of IG Client Sentiment shows traders are net-short USD/CAD - the ratio stands at -1.06 (48.6% of traders are long) – neutral reading
  • Long positions are 14.9% higher than yesterday and 28.8% higher from last week
  • Short positions are 18.5% higher than yesterday and 24.0% lower 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 further net-short than yesterday and last week, and the combination of current positioning and recent changes gives us a USD/CAD-bullish contrarian trading bias from a sentiment standpoint.

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

---

Relevant US / Canada Data Releases

US / Canada Key Data Releases - Ecomomic 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.