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
Wall Street
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
  • US equities back to record highs, but inflation concerns remain. FTSE eyeing EU-UK spat. Get your weekly equities outlook from @JMcQueenFX here: https://t.co/W5TUhVJ1YZ https://t.co/tQdkW5ysQD
  • What are the Market cycles? How are currencies impacted in these cycles? How can these cycles impact forex trading patterns? Find out here: https://t.co/ckr2fUOWqW https://t.co/rc3wLhm8Bn
  • Support and resistance are the cornerstone of technical analysis, making it the foundation that you build your knowledge on. Build a stronger foundation here: https://t.co/yXLaRpl90I https://t.co/t1vWdPFotC
  • The ISM manufacturing index plays an important role in forex trading, with ISM data influencing currency prices globally. Find out about the recent history of ISM data, how to track it, and how to trade its release here: https://t.co/J8WZ1JYXnX https://t.co/4mDGc8Bfd5
  • The continuity seen across these volatility cycles is a good thing. Historical precedence offer a blueprint for identifying conditions supportive for a vol-event to occur, and how they may unfold. Deepen your knowledge of historical volatility here: https://t.co/vg7w10la3j https://t.co/7Yd5Tzua0d
  • Do you know the difference between investing and trading? Because while the goal might seem the same, they're very different things . Learn more here.https://t.co/fG6fNEPj9q https://t.co/A0W3CA5EWh
  • The Canadian Dollar remains supported amid elevated crude oil prices. Don’t be surprised if the Bank of Canada disappoints aggressive hawkish expectations. Earnings season is a wildcard. Get your weekly Loonie forecast from @ddubrovskyFX here: https://t.co/iyb5OmW2S4 https://t.co/Oh35VUg9Gr
  • Rather than focusing on earning a specific number of pips per day, traders need to focus on what can be controlled. In trading terms this relates to following a strategy perfectly, with no emotion or hesitation. Learn more here: https://t.co/6ZH026QLRN https://t.co/jQ9HH9KuWy
  • Slippage can be a common occurrence in forex trading but is often misunderstood. Understanding how forex slippage occurs can enable a trader to minimize negative slippage, while potentially maximizing positive slippage. Learn about FX slippage here: https://t.co/Blrl0uF2Ct https://t.co/VXiNCuR3bF
  • The Spinning Top candlestick pattern forms part of the vast Japanese candlestick repertoire with its own distinct features. Gain a better understanding of the spinning top candlestick here: https://t.co/DWm7cBMUg9 https://t.co/9SC4I69oi7
Canadian Dollar Price Outlook: USD/CAD Bulls Targeting Trend Extremes

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

Michael Boutros, Strategist

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.

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.

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.

---

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