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
Mixed
GBP/USD
Bullish
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
  • Japan’s Nikkei PMI Manufacturing (OCT P) Actual: 48.5 Est: N/A Previous: 48.9 #JPY
  • The $NZD has attempted to recover against its US namesake as expected but the move may be cut short as sellers reclaim the upper hand. Get your NZD/USD market update from @IlyaSpivak here: https://t.co/D0LAlHHfuf https://t.co/wBcFhnfcAI
  • Japan’s Nikkei Japan PMI Manufacturing (OCT P) Actual: 48.5 Est: N/A Previous: 48.9 #JPY
  • #USDollar Forecast: #USDBRL Breakout Opening Door to Selloff? https://www.dailyfx.com/forex/analyst_picks/todays_picks/dimitri_zabelin/2019/10/24/US-Dollar-Forecast-USDBRL-Breakout-Opening-Door-to-Selloff.html
  • $USDSGD fell Wednesday despite #Singapore Core CPI missing expectations at 0.7% y/y (SEP), down from 0.8% prior. That was the softest outcome since March 2016. Weakness in #USD as #SP500 futures rose amid US earnings likely accounted for SGD strength - https://t.co/ATsmOqQOc5 https://t.co/2ohbq68ypV
  • Heads Up:🇯🇵 JPY Nikkei Japan PMI Manufacturing (OCT P) due at 00:30 GMT (15min), Actual: N/A Expected: N/A Previous: 48.9 https://www.dailyfx.com/economic-calendar#2019-10-24
  • Heads up: Japan’s Nikkei Japan PMI Manufacturing (OCT P) is due at 0:30 GMT (15 min) Est: N/A Previous: 48.9 #JPY
  • - Swedish Krona, Norwegian Krone eye Riksbank and Norges Bank rate moves - Pair may suffer if central banks strike a worrying tone and outlook for growth - #ECB rate decision, commentary and #Brexit may also amplify Nordic volatility ⬇️ https://www.dailyfx.com/forex/market_alert/2019/10/24/Euro-NOK-SEK-Brace-for-Riksbank-ECB-and-Norges-Bank-Rate-Moves-.html
  • #BITCOIN pivot points (daily) – S3: 6165.06, S2: 6872.64, S1: 7148.71, R1: 7856.29, R2: 8287.8, R3: 8995.38- https://www.dailyfx.com/pivot-points?ref=SubNav?utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
  • RT @JeffSnider_AIP: How's it going in repo? ICYMI, the Fed announced today a big increase in O/N caps to $125bln, and term operations upc…
Canadian Dollar Price Outlook: USD/CAD Rally Stalls at Resistance

Canadian Dollar Price Outlook: USD/CAD Rally Stalls at Resistance

2019-10-07 18:30:00
Michael Boutros, Technical Strategist
Share:

The Canadian Dollar struggling to regain its footing against the US Dollar with USD/CAD trading just below near-term resistance into the start of the week. These are the updated targets and invalidation levels that matter on the USD/CAD charts. Review my latestWeekly Strategy Webinar for an in-depth breakdown of this Loonie price setup and more.

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

Canadian Dollar Price Chart – USD/CAD Daily

Canadian Dollar Price Chart - USD/CAD Daily - Loonie Trade Outlook USDCAD Technical Forecast

Chart Prepared by Michael Boutros, Technical Strategist; USD/CAD on Tradingview

Technical Outlook: In my previous Canadian Dollar Price Outlook we highlighted a key near-term resistance zone at 1.3284/88 while noting, “Expect acceleration IF price can break higher here with such a scenario exposing longer-term downtrend resistance near 1.3355.” A topside breach last week saw price register a high at 1.3348 before pulling back – is there more to go?

Initial support now rests back at the 61.8% retracement at 1.3288 with broader bullish invalidation at the September channel line / monthly open at 1.3240. A topside breach targets the 100% extension at 1.3382- looking for a bigger reaction there IF reached.

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

Canadian Dollar Price Chart – USD/CAD 120min

Canadian Dollar Price Chart - USD/CAD 120min - Loonie Trade Outlook - Technical Forecast

Chart Prepared by Michael Boutros, Technical Strategist; USD/CAD on Tradingview

Notes: A closer look at Loonie price action shows USD/CAD trading within the confines of an ascending pitchforkformation extending off the September / October lows. The 75% parallel caught resistance on Friday at with short-term descending channel guiding this decline and further highlighting near-term support at 1.3284/88- look for a reaction there.

A downside break would expose subsequent support objectives at 1.3266, the 1.618% extension at 1.3253 and 1.3240- both areas of interest for possible exhaustion IF reached. A topside breach of this channel still faces the September high-day close at 1.3335 with 1.3355 and 1.3382 still critical.

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

Bottom line: USD/CAD is coming off uptrend resistance but remains constructive for now while within this formation. From a trading standpoint, we’ll favor fading weakness while above 1.3253 targeting a test of the upper parallels near 1.3382. Ultimately, the goal is to sell a higher-high here for a larger correction. Keep in mind we get Canada employment data on Friday. Review my latest Canadian Dollar Weekly Price Outlook for a deeper look into the longer-term USD/CAD technical trading levels.

Canadian Dollar Trader Sentiment - USD/CAD Price Chart

Canadian Dollar Trader Sentiment - USD/CAD Price Chart - Loonie Trade Outlook - Technical Forecast
  • A summary of IG Client Sentiment shows traders are net-short USD/CAD - the ratio stands at -2.66 (27.3% of traders are long) – bullish reading
  • Traders have remained net-short since September 12th; price has moved 1.0% higher since then
  • Long positions are 12.6% higher than yesterday and 13.1% lower from last week
  • Short positions are 0.6% higher than yesterday and 19.1% 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 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!

---

Key US / Canada Data Releases

US / Canada Economic Calendar - USD/CAD Key Data Releases - Loonie Trade Outlook

Economic Calendar - latest economic developments and upcoming event risk.

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.