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
Mixed
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
  • Join @CVecchioFX at 7:30 EST/11:30 GMT for a webinar on developing a strategy for major event risk. Register here: https://t.co/D8DAmLpkuS https://t.co/L2yIQTAIHC
  • Commodities Update: As of 10:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 0.64% Gold: 0.35% Silver: 0.21% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/Rg9tEnAxqM
  • Senator Manchin has reportedly agreed to a $1.75trillion spending plan, following meeting with Biden - CNN
  • Forex Update: As of 10:00, these are your best and worst performers based on the London trading schedule: 🇦🇺AUD: 0.22% 🇨🇦CAD: 0.06% 🇬🇧GBP: -0.01% 🇪🇺EUR: -0.19% 🇳🇿NZD: -0.21% 🇨🇭CHF: -0.35% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/ypfFBvaizD
  • BoJ and PBoC extend currency swap arrangement - BoJ
  • Bundesbank says inflation to continue rising for the time being before gradually declining next year Full-year growth likely to be significantly below its June forecast for 3.7%
  • Indices Update: As of 10:00, these are your best and worst performers based on the London trading schedule: FTSE 100: 0.32% Germany 30: 0.16% US 500: 0.08% Wall Street: -0.00% France 40: -0.19% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/GVe23x5Zx1
  • Futures have their own set of characteristics and appeal to different types of traders and investors for a variety of reasons. Get your free trading guide and learn to trade the markets with futures here. Download your guide today!https://t.co/72oKM0kLHL https://t.co/v0UsIhwJM1
  • Bank of Spain Governor De Cos says recent developments anticipate a significant downward economic outlook revision for 2021
  • MACD who? The Moving Average Convergence Divergence (MACD) is a technical indicator which simply measures the relationship of exponential moving averages (EMA). Find out how you can incorporate MACD into your trading strategy here: https://t.co/ZNs4Qi8ieG https://t.co/qfhwaVKZdg
Canadian Dollar Outlook: USD/CAD Bulls at Risk – Loonie Trade Levels

Canadian Dollar Outlook: USD/CAD Bulls at Risk – Loonie Trade Levels

Michael Boutros, Strategist

The Canadian Dollar is firmer on the week but keep USD/CAD within the confines of the monthly uptrend heading into an extended holiday break and the close of November trade. The turn in price comes just ahead of a critical resistance range and we’re on the lookout for evidence of a near-term exhaustion high as price approaches uptrend support. These are the updated targets and invalidation levels that matter on the USD/CAD price charts. Review my latest Weekly 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 Dolla 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 a critical resistance threshold and we’re on the lookout for near-term topside exhaustion up here.” The level in focus was 1.3335/55- a region defined by the September high-day close and the 61.8% retracement of the late-May decline. Price registered a high at 1.3328 last week before failing with the decline turning from longer-term downtrend parallel resistance. The move keeps price within the confines of the ascending channel formation we’ve been tracking for weeks now and the focus is on a test of slope support near ~1.3250s.

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 rebounding off channel resistance last week with the pullback trading just above support at the 61.8% retracement of the September decline / Friday’s low at 1.3252/54. A break / close below this zone would be needed to suggest a larger correction is underway with such a scenario eyeing initial support objectives at 1.3219 and 1.3191 – an area of interest for possible downside exhaustion IF reached.

Weekly open resistance stands at 1.3295 with critical resistance steady at 1.3335/50- ultimately, the advance remains vulnerable while below this threshold. That said, a topside breach / close above would expose subsequent resistance objectives at 1.3385 and 1.3435/37.

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

Bottom line: USD/CAD is pulling back just ahead of a major zone of lateral resistance at 1.3335/55. While we cannot rule-out another run at the highs, the broader October advance remains vulnerable while below this threshold heading into extended holiday break / the monthly close. From at trading standpoint, look for a reaction on a test of channel support for guidance with a break needed to solidify a larger correction in price. Failure at the lower parallel would shift the focus back towards key resistance. Review my latest Canadian Dollar Weekly Price 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
  • A summary of IG Client Sentiment shows traders are net-short USD/CAD - the ratio stands at –2.27 (30.58% of traders are long) – bullish reading
  • Long positions are23.42% higher than yesterday and 31.10% higher from last week
  • Short positions are10.50% lower than yesterday and 4.16% 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. Yet traders are less net-short than yesterday and compared with last week. Recent changes in sentiment warn that the current USD/CAD price trend may soon reverse lower despite the fact traders remain net-short.

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

---

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