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
Bullish
USD/JPY
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
Gold
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
Oil - US Crude
Bearish
Bitcoin
Mixed
More View more
Real Time News
  • #Palladium prices may keep falling after the largest two-day drop in three months pierced chart support. Soft autos turnover in China and rising US rates may be to blame. Get your market update from @IlyaSpivak here:https://t.co/ieiENjbGRo https://t.co/hrOmLWuHx5
  • Indices Update: As of 08:00, these are your best and worst performers based on the London trading schedule: France 40: 0.50% Germany 30: 0.48% US 500: 0.33% Wall Street: 0.30% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/HqtZEYKrk8
  • Get trading education and join our analysts for live coverage of market-moving economic data at the DailyFX Webinars. https://www.dailyfx.com/webinars?re-author=Cottle?utm_source=Twitter&utm_medium=Cottle&utm_campaign=twr
  • Trade deal bets kept the Singapore Dollar, Philippine Peso, Indonesian Rupiah and Malaysian Ringgit afloat despite $USD strength. This is the key fundamental driver for #ASEAN FX.Get your market update from @ddubrovskyFX here: https://t.co/aB8qP3JsB4 https://t.co/oAF2XxyNak
  • European Opening Calls from IG: #FTSE 7330 +0.51% #DAX 13262 +0.62% #CAC 5932 +0.52% #AEX 599 +0.61% #MIB 23636 +0.66% #IBEX 9217 +0.47% #STOXX 3712 +0.63%
  • The $USDINR rate could rise as the Nifty 50 sinks after Indian Industrial Production shrank by the most since 2011, fueling RBI rate cut bets amid the ongoing US-China trade war. Get your market update from @ddubrovskyFX here:https://t.co/1PzYH3xCdV https://t.co/AqdtzJN0w1
  • (Analyst Pick) USD/JPY Outlook Bearish on Yen Chart Breakout, Trade Wars $USDJPY #Yen #TradeWars - https://www.dailyfx.com/forex/analyst_picks/todays_picks/daniel_dubrovsky/2019/11/15/USDJPY-Outlook-Bearish-on-Yen-Chart-Breakout-Trade-Wars.html?CHID=9&QPID=917702 https://t.co/5CKAA0e7Pc
  • #GBP, #NOK and #SEK are expected to be the most-active #G10 currencies against the #USD with one-week implied volatility at 7.85, 7.82 and 7.15 respectively [delayed]
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.63%, while traders in France 40 are at opposite extremes with 87.34%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/wyEJd6C1d2
  • Forex Update: As of 05:00, these are your best and worst performers based on the London trading schedule: 🇨🇦CAD: 0.18% 🇦🇺AUD: 0.10% 🇳🇿NZD: 0.05% 🇬🇧GBP: -0.00% 🇨🇭CHF: -0.11% 🇯🇵JPY: -0.14% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/PmNFR94G9T
Canadian Dollar Outlook: USD/CAD Slams into Resistance- Loonie Levels

Canadian Dollar Outlook: USD/CAD Slams into Resistance- Loonie Levels

2019-11-01 15:30:00
Michael Boutros, Technical Strategist
Share:

The Canadian Dollar is down more-than 0.86% against the US Dollar this week with USD/CAD poised to mark an outside-weekly reversal off support on Friday. The rebound takes price into downtrend resistance and leaves the immediate advance vulnerable into the close- we’re looking for a reaction here into the November open for guidance. These are the updated targets and invalidation levels that matter on the USD/CAD price charts. Review my latestWeekly Strategy Webinar for an in-depth breakdown of this Sterling 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 - Technical Forecast

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

Technical Outlook: In my latest Canadian Dollar Price Outlook we noted that USD/CAD was, “approaching the first main support hurdle here at 1.3050- threat of near-term downside exhaustion.” Price briefly registered a low at 1.3042 early in the week before posting an outside-day reversal higher with the three-day rally taking out targets into downtrend resistance extending off the October highs- looking for a reaction up here.

A topside breach exposes the October open / 61.8% retracement at 1.3231/40 – a close above this threshold would be needed to validate a breakout. Initial support at 1.3145 backed by the October low-day reversal close at 1.3086. Ultimately, a close below 1.3050/58 is needed to mark resumption of the broader downtrend in USD/CAD.

Canadian Dollar Price Chart – USD/CAD 240min

Canadian Dollar Price Chart - USD/CAD 240min - Loonie Trade Outlook - Technical Forecast

Notes: A closer look at Loonie price action shows USD/CAD testing the upper bounds of the descending pitchfork formation we’ve been tracking off the September / October highs for the second time on the back of today’s US Non-Farm Payroll (NFP) report. IF this fails, look for a break below 1.3134 to challenge the low-day close at 1.3086 and 1.3050- risk for an accelerated decline if this level gives way. Strength above 1.3231 is needed to keep the recent recovery viable with such a scenario once again eyeing a drive towards key resistance at 1.3335/55.

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

Bottom line: The USD/CAD recovery is testing downtrend resistance here and leaves the immediate long-bias vulnerable into the start of the month while below this slope- risk for topside exhaustion. From a trading standpoint, a good spot to reduce long-exposure / raise protective stops – IF this holds, look for a break below the 61.8% parallel to get this going.Review my latest Canadian Dollar Weekly Outlook for a closer look at the longer-term USD/CAD technical trading levels.

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

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-long USD/CAD - the ratio stands at +1.42 (58.64% of traders are long) – bearish reading
  • Long positions are0.90% lower than yesterday and 31.52% lower from last week
  • Short positions are1.30% higher than yesterday and 4.71% higher 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 and 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!

---

Key US / Canada Data Releases

US / Canada Economic Calendar - USD/CAD Key Data Releases

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.