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
Bullish
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
Bullish
GBP/USD
Mixed
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
Breaking news

UK-EU trade deal talks have entered tunnel talks, GBP/USD Spkes to Highs

Real Time News
  • it's that webinar time... topics for today a) USD breakdown, 2 year lows b) Gold strength shows, blip or beacon? c) EUR/USD & life above 1.2000, ECB on Deck (12-10) starting right meow https://www.dailyfx.com/webinars/455809179 https://t.co/RxsvujmVxs
  • Indices Update: As of 19:00, these are your best and worst performers based on the London trading schedule: US 500: 1.39% Wall Street: 0.94% France 40: -0.10% Germany 30: -0.11% FTSE 100: -0.16% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/j1F1eCqSTc
  • The price of gold bounces back from the November low ($1765) to snap the series of lower highs and lows carried over from late last week. Get your $XAUUSD market update from @DavidJSong here:https://t.co/vfO3IwwnYT https://t.co/bGj7oK9uQk
  • RT @JoeBiden: We need to deliver immediate relief for the American people and build our economy back better than ever. Tune in as I introdu…
  • Biden: Any relief legislation passed before he takes office in January is "just a start." Says his team is working on coronavirus relief package they will roll out after he takes office $DXY $SPX
  • 🇧🇷 Balance of Trade (NOV) Actual: $3.73B Expected: $4.789B Previous: $5.47B https://www.dailyfx.com/economic-calendar#2020-12-01
  • Canadian #Dollar Forecast: $USDCAD Testing Multi-year Lows for Support - https://t.co/bEVSsoBc5Y https://t.co/FinX3dn8eN
  • 🇧🇷 Balance of Trade (NOV) Actual: $3.73B Expected: $4.789B Previous: $5.5B https://www.dailyfx.com/economic-calendar#2020-12-01
  • Join @JStanleyFX 's #webinar at 2:00 PM ET/6:00 PM GMT for his weekly update on trading price action. Register here: https://t.co/ZCcMdyaTsB https://t.co/o823Z1XskN
  • Heads Up:🇺🇸 Fed Daly Speech due at 18:15 GMT (15min) https://www.dailyfx.com/economic-calendar#2020-12-01
Canadian Dollar Price Outlook: USD/CAD Breakout Testing Resistance

Canadian Dollar Price Outlook: USD/CAD Breakout Testing Resistance

2020-02-10 18:34:00
Michael Boutros, Strategist
Share:

Canadian Dollar Technical Price Outlook: Near-term Trade Levels

  • Canadian Dollar updated technical trade levels – Daily & Intraday Charts
  • USD/CAD price breakout testing technical confluence resistance zone
  • Focus on close with respect to 1.3330/35 zone - constructive while above 1.3230

The Canadian Dollar plummeted more than 2.7% against the US Dollar since the January lows in USD/CAD with the recent price breakout now testing confluence resistance early in the week. We’re looking for a reaction in price up here with the broader long-bias vulnerable while below this threshold. These are the updated targets and invalidation levels that matter on the USD/CAD price charts heading into the Fed. 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 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 last Canadian Dollar Price Outlook we noted that the USD/CAD was trading within an ascending formation extending off the January lows as price was testing confluence resistance at 1.3182/84. Our outlook remained, “constructive while within this formation with a breach needed to fuel the next leg higher in price.” A breakout into the close of January trade saw the price rally another 1% with USD/CAD now eyeing confluence resistance at 1.3330/36- a region defined by the September high-day close at and the 61.8% retracement of the May decline. The focus is on a reaction off this threshold with the immediate long-bias vulnerable while below.

Canadian Dollar Price Chart – USD/CAD 120min

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

Notes: A closer look at Loonie price action sees USD/CAD continuing to trade within the confines of an ascending pitchfork formation extending off the January / February lows – a breach / close above 1.3330/36 is needed to keep the current advance viable with such a scenario targeting confluence resistance into the upper parallel at 1.3383/92- area of interest for possible topside exhaustion IF reached. Interim support rests with the median-line (currently ~1.3280s) backed by 1.3264 with near-term bullish invalidation at the January close / February open at 1.3231/36.

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: USD/CAD is testing confluence resistance here and the immediate focus is on a the daily close with respect to 1.3182/84. From at trading standpoint, a good spot to reduce long-exposure / raise protective stops – be on the lookout for possible topside exhaustion while below this threshold. That said- ultimately, the outlook remains constructive while within this formation with a breach needed to fuel the next leg higher in price. Review my latest Canadian Dollar Weekly Price Outlook for a closer look at the longer-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 –4.94 (only 16.83% of traders are long) – bullish reading
  • Long positions are17.20% higher than yesterday and 23.65% lower from last week
  • Short positions are9.39% higher than yesterday and 53.55% 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- the combination of current positioning and recent changes gives us a further mixed USD/CAD 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 12% -2% 8%
Weekly 20% 12% 18%
Learn how shifts in USD/CAD retail positioning impact trend
Get My Guide

---

Key US / Canada Data Releases

US / Canada Key Data Releases - USD/CAD Economic Calendar- Loonie Event Risk

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