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
USD/JPY
Mixed
Gold
Bearish
Oil - US Crude
Bearish
Bitcoin
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
More View more
Real Time News
  • 🇬🇧 GBP Core Consumer Price Index (YoY) (OCT), Actual: 1.3% Expected: 1.7% Previous: 1.7% https://www.dailyfx.com/economic-calendar#2019-11-13
  • 🇬🇧 GBP Consumer Price Index (MoM) (OCT), Actual: 0.1% Expected: -0.1% Previous: 0.1% https://www.dailyfx.com/economic-calendar#2019-11-13
  • 🇬🇧 GBP Consumer Price Index (YoY) (OCT), Actual: 1.7% Expected: 1.6% Previous: 1.7% https://www.dailyfx.com/economic-calendar#2019-11-13
  • Asia’s vast and growing importance to the world economy is not yet matched by the presence of a currency trading center to rival the established order. Get your update on market drivers in Asia from @DavidCottleFX here: https://t.co/E2hqoRdO7q https://t.co/SvIzAGXyOP
  • Join @PaulRobinsonFX 's #webinar at 5:30 AM ET/10:30 AM GMT to gain insight on indices and commodities for the active trader. Register here: https://t.co/gghsFsZYlx https://t.co/fnHclQGjE1
  • UK Election Poll (Kantar) 7-11 Nov - Conservatives 37% (-2) - Labour 27% (+2) - Lib Dems 17% (-1) - Brexit 9% (+1)
  • Heads Up:🇬🇧 GBP House Price Index (YoY) (SEP) due at 09:30 GMT (15min), Actual: N/A Expected: 1.1% Previous: 1.3% https://www.dailyfx.com/economic-calendar#2019-11-13
  • Heads Up:🇬🇧 GBP Core Consumer Price Index (YoY) (OCT) due at 09:30 GMT (15min), Actual: N/A Expected: 1.7% Previous: 1.7% https://www.dailyfx.com/economic-calendar#2019-11-13
  • Heads Up:🇬🇧 GBP Consumer Price Index (YoY) (OCT) due at 09:30 GMT (15min), Actual: N/A Expected: 1.6% Previous: 1.7% https://www.dailyfx.com/economic-calendar#2019-11-13
  • Heads Up:🇬🇧 GBP Consumer Price Index (MoM) (OCT) due at 09:30 GMT (15min), Actual: N/A Expected: -0.1% Previous: 0.1% https://www.dailyfx.com/economic-calendar#2019-11-13
Canadian Dollar Price Chart: USD/CAD Breaks Out – Loonie Trade Levels

Canadian Dollar Price Chart: USD/CAD Breaks Out – Loonie Trade Levels

2019-07-23 15:30:00
Michael Boutros, Technical Strategist
Share:

The Canadian Dollar is slipped more than 1.1% against the US Dollar over the past three sessions with the advance now testing confluence resistance at the monthly highs – our focus is on today’s close. 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 Loonie trade 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 Technical Outlook

Technical Outlook: In my latest Canadian Dollar Weekly Price Outlook we noted that, “the immediate focus is on a reaction of this key zone at 1.2972-1.3052 – watch the weekly close. From a trading standpoint, look to reduce short-exposure / lower protective stops in this zone. USD/CAD tested this zone for more than four weeks with yesterday’s rally through the monthly open at 1.3076 now attempting to breach the objective July opening-range highs at 1.3145. Note that basic channel resistance extending off the yearly highs also converges on this region and further emphasizes the significance of today’s close.

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 120minute - Loonie Technical Outlook

Notes: A closer look at Loonie price action shows USD/CAD trading within the confines of an ascending pitchfork formation extending off the monthly lows with the advance now testing confluence resistance just above 1.3145. A topside breach / close above this region is needed to keep the long-bias viable targeting the upper parallel (currently ~1.32) and the 38.2% retracement of the May decline at 1.3226.

Look for initial support at the median-line, currently ~1.3115 backed by the 25% line near 1.3080. Ultimately a break below the weekly opening-range lows at 1.3040 would be needed to mark resumption lower- such a scenario would risk a drop towards confluence Fibonacci support at 1.2971.

Learn how to Trade with Confidence in our Free Trading Guide

Bottom line: The USD/CAD rally is now testing key confluence resistance at 1.3145/60 and leaves the immediate advance vulnerable while below this threshold near-term. From a trading standpoint, a good place to reduce long-exposure / raise protective stops – be on the lookout for possible exhaustion. Ultimately, a close above is needed to suggest a larger breakout is underway and validate a breach of the monthly opening-range. Failure here would have me looking for support ahead of the monthly open (1.3076) IF price is indeed heading higher.

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 Technical Outlook
  • A summary of IG Client Sentiment shows traders are net-long USD/CAD - the ratio stands at +1.05 (51.2% of traders are long) – neutral reading
  • Long positions are 12.2% lower than yesterday and 22.9% lower from last week
  • Short positions are 18.1% higher than yesterday and 1.7% lower from last week
  • We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests USD/CAD prices may continue to fall. Yet traders are less net-long than yesterday & compared with last week and the recent changes in sentiment warn that the current USD/CAD price trend may soon reverse higher despite the fact traders remain net-long.

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

---

Relevant US / Canada Data Releases

US / Canada Economic Outlook - Key Data Releases

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.