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.

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
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
Oil - US Crude
Bearish
Wall Street
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
Gold
Bearish
GBP/USD
Bearish
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
More View more
Real Time News
  • Central banks often deem it necessary to intervene in the foreign exchange market to protect the value of their national currency. Learn how central bank intervention can impact your trading here: https://t.co/ZJOEtpGUIq https://t.co/TAMd7kPWFZ
  • What are some key news and factors affecting the #crudeoil market? Get your free forecast for this quarter here:https://t.co/WM6X6ENFM2 https://t.co/lynycOpL9B
  • 🇲🇽 Business Confidence (NOV) Actual: 42.4 Previous: 41.6 https://www.dailyfx.com/economic-calendar#2020-12-01
  • 🇲🇽 Business Confidence (NOV) Actual: 42.4 Previous: 41.6 https://www.dailyfx.com/economic-calendar#2020-12-01
  • $GBPNZD could be poised to extend its run to fresh yearly lows as price struggles to break back above the 78.6% Fib (1.9024) A push to challenge the 88.6% Fib (1.8676) looks on the cards if sellers can drive price below the November low (1.8896) $GBP $NZD #technicalanalysis https://t.co/DlRb2haxL6
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 94.09%, while traders in NZD/USD are at opposite extremes with 74.74%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/OiM0irh4dG
  • Heads Up:🇲🇽 Business Confidence (NOV) due at 12:00 GMT (15min) Previous: 41.5 https://www.dailyfx.com/economic-calendar#2020-12-01
  • Stock diversification can help investors through volatile periods within the stock markets. Get your guide to stock diversification here: https://t.co/is594vNNcT https://t.co/kUxUFk5TW0
  • Commodities Update: As of 11:00, these are your best and worst performers based on the London trading schedule: Silver: 3.23% Gold: 1.67% Oil - US Crude: 0.03% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/EOQKtjK8EG
  • Forex Update: As of 11:00, these are your best and worst performers based on the London trading schedule: 🇪🇺EUR: 0.31% 🇨🇭CHF: 0.29% 🇨🇦CAD: 0.23% 🇬🇧GBP: 0.12% 🇦🇺AUD: 0.05% 🇯🇵JPY: -0.08% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/eI4xtkV6Gd
Canadian Dollar Price Outlook: USD/CAD Bulls Targeting Trend Extremes

Canadian Dollar Price Outlook: USD/CAD Bulls Targeting Trend Extremes

2020-02-06 16:30:00
Michael Boutros, Strategist
Share:

Canadian Dollar Technical Price Outlook: USD/CAD Weekly Trade Levels

The Canadian Dollar continued its march lower against the US Dollar with USD/CAD poised to mark a fifth consecutive weekly advance. The rally keeps price within a broad consolidation pattern with the advance now approaching the upper-bounds of a multi-year formation and leaves the immediate long-bias vulnerable heading into resistance levels just higher. These are the updated targets and invalidation levels that matter on the USD/CAD weekly price chart. Review my latest Weekly Strategy Webinar for an in-depth breakdown of this Loonie trade setup and more.

Starts in:
Live now:
Dec 07
( 13:12 GMT )
Live Weekly Strategy Webinars on Mondays at 12:30GMT
Weekly Scalping Webinar
Register for webinar
Join now
Webinar has ended

Canadian Dollar Price Chart – USD/CAD Weekly

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

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

Notes: In my last Canadian Dollar Weekly Price Outlook we noted that USD/CAD had rebounded off confluence support early in the year with, a close above 1.3140s needed to keep the focus higher in price. A gap higher into the Sunday-open the following week has fueled a rally of more than 1.2% with USD/CAD now testing the 50% retracement of the decline off the 2018/2019 high at 1.3308.

A critical resistance confluence is eyed just higher at 1.3370/92- a region defined by last year’s high-week close & the 61.8% retracement and converges on basic trendline resistance extending off the 2019 high. Looking for a reaction off one of these levels in the weeks ahead. Weekly open support rests at 1.3230 backed by 1.3184 with broader bullish invalidation at the 20149 low-week close 1.3058.

Forex for Beginners
Forex for Beginners
Recommended by Michael Boutros
New to Forex Trading? Get started with this Beginners Guide
Get My Guide

Bottom line: The USD/CAD rally is testing initial resistance targets and we’re on the lookout for possible topside exhaustion near-term heading into yearly slope resistance just higher. From a trading standpoint, a good spot to reduce long-exposure / raise protective stops on a test of these next two levels. Ultimately, we’re looking for a breakout of this broad consolidation structure which has continued to govern price for over a year – that said, price is now approaching the upper bounds of the formation. Keep in mind we get the release of both US Non-Farm Payrolls (NFP) and Canada Employment figures on Friday- stay nimble into the close of the week. Review my latest Canadian Dollar Price Outlook for a closer look at the near-term USD/CAD technical trade 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-short USD/CAD - the ratio stands at -4.90 (16.94% of traders are long) – bullish reading
  • Long positions are7.54% lower than yesterday and 36.99% lower from last week
  • Short positions are16.84% higher than yesterday and 76.17% 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. Traders are further net-short than yesterday & last week, and the combination of current positioning and recent changes gives us a stronger USD/CAD-bullish contrarian trading bias from a sentiment standpoint.
USD/CAD BEARISH
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily 9% -8% 4%
Weekly 17% 9% 15%
Learn how shifts in USD/CAD retail positioning impact trend
Get My Guide

---

Previous Weekly Technical Charts

--- Written by Michael Boutros, Technical 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