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.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View more
Real Time News
  • If all these new demands get incorporated in the final package, the legislation's price tag will drop significantly. We could be looking at something close to $1.5 trillion or even less $USD $XAUUSD
  • *Reminder: Weekly Strategy Webinar Tomorrow Morning at 8:30am ET on DailyFX!
  • According to GS, S&P 500 daily returns are positively correlated with flows. Over the last 3 months, flows have been strong, but the $SPX was flat (model predicted a 7% rally). When SPX returns and flows deviate, they tend to mean-revert in subsequent periods #trading
  • Risk management is one of the most important aspects of successful trading, but is often overlooked. What are some basic principles or risk management? Find out from @PaulRobinsonFX here:
  • Further your forex knowledge and gain insights from our expert analysts @ddubrovskyFX and @FxWestwater on JPY with our free Q4 market analysis guide, available for free today.
  • How does stock market liquidity benefit its traders? Learn more here:
  • A currency carry trade involves borrowing a low-yielding currency in order to buy a higher yielding currency in an attempt to profit from the interest rate differential. Find out if the carry trade suits your trading style here:
  • Looking for a new way to trade reversals? One of the most used reversal candle patterns is known as the Harami. Like most candlestick formation patterns, the Harami tells a story about sentiment in the market. Get better with trading reversals here:
  • Quarterly earnings from Netflix and Tesla, two big tech companies, will take center stage next week and could set the trading tone for the S&P 500 and the Nasdaq 100. Get your weekly equities forecast from @DColmanFX here:
  • 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.
Canadian Dollar Forecast: USD/CAD Price Remains Vulnerable

Canadian Dollar Forecast: USD/CAD Price Remains Vulnerable

Nick Cawley, Strategist

Canadian Dollar Outlook: USD/CAD in Limbo

  • USD/CAD need a catalyst to break back above 1.3200/1.3212.
  • Long-legged doji highlights market’s current indecision.

Brand New Q4 2019 CAD and USD Forecasts and Top Trading Opportunities

USD/CAD Remains Capped in the Short-Term

The recent weakness in the Canadian dollar against the US dollar will likely be put on hold for now as recent attempts to break back above the 1.3200/1.3212 area have proved unsuccessful. This three-week high is being guarded by the 50-day moving average - currently at 1.3206 – and the pair will need to trade and close above both levels to re-start short-term bullish momentum. USD/CAD may find itself stuck in a trading range based off the October 30 candle between 1.3075 and 1.3210.

The market’s current indecision is currently highlighted by the long-legged doji made on November 5with the opening and closing price just a couple of cents apart. While this doji does not imply a move higher o lower, it does underscore market indecision in USD/CAD at current levels. The CCI indicator at the bottom of the chart shows that while the pair are nearing overbought territory, this is starting to flatten off. In addition, USD/CAD currently trades mid-market below the 50-dma and above the 20-dma.

It is likely that USD/CAD will trade in a narrow range over the next few days with any trend break needing to be confirmed by a close above/below either support or resistance. On Friday, the latest look at Canadian jobs and wages and over the border the closely watch Uni of Michigan sentiment, both releases that may provoke a trend-breaking move.

DailyFX Economic Calendar

USD/CAD Daily Price Chart (March – November 7, 2019)

 Canadian Dollar Forecast: USD/CAD Price Remains Vulnerable

IG Client Sentiment shows that traders are 53% net-longUSD/CAD, a bearish contrarian bias.

However recent daily and weekly positional changes give us a bullish outlook for USD/CAD.

Traders may be interested in two of our trading guides – Traits of Successful Traders and Top Trading Lessons – while technical analysts are likely to be interested in our latest Elliott Wave Guide.

What is your view on the Canadian Dollar – bullish or bearish?? You can let us know via the form at the end of this piece or you can contact the author at nicholas.cawley@ig.comor via Twitter @nickcawley1.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.