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
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
Wall Street
More View more
Real Time News
  • Continued $USD strength highlights major FX price action
  • Forex Update: As of 20:00, these are your best and worst performers based on the London trading schedule: 🇯🇵JPY: 0.43% 🇬🇧GBP: -0.45% 🇳🇿NZD: -0.61% 🇪🇺EUR: -0.74% 🇦🇺AUD: -0.76% 🇨🇭CHF: -1.00% View the performance of all markets via
  • DAX is making its way higher, but the grinding wedge behavior is concerning CAC has been extremely impressive, but a dip could be around the bend. Get your market update from @PaulRobinsonFX here:
  • RT @FxWestwater: 200-day SMA Fails to Support Ailing Lumber Prices - #LBS1! chart
  • NY Fed on Juneteenth: - SIFMA not recommending a fixed income market close - US Dollar funding markets expected to be open
  • Commodities Update: As of 20:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: -0.21% Gold: -2.25% Silver: -4.10% View the performance of all markets via
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Gold are long at 82.70%, while traders in France 40 are at opposite extremes with 78.29%. See the summary chart below and full details and charts on DailyFX:
  • SEC: - We will be closed on Friday to observe Juneteenth - Exchanges make their own determinations on operation status - We understand major markets will operate with normal market hours
  • Indices Update: As of 20:00, these are your best and worst performers based on the London trading schedule: France 40: 0.11% Germany 30: 0.10% FTSE 100: 0.06% US 500: -0.01% Wall Street: -0.01% View the performance of all markets via
  • AUD/USD slips below the 200-Day SMA (0.7548) for the first time since June 2020 as fresh forecasts coming out of the Federal Reserve indicate two rate hikes for 2023. Get your $AUDUSD market update from @DavidJSong here:
Canadian Dollar Outlook: USD/CAD Drops to Support, Will it Break Out?

Canadian Dollar Outlook: USD/CAD Drops to Support, Will it Break Out?

Peter Hanks, Strategist

Canadian Dollar Outlook:

  • The Canadian Dollar has fallen to a nearby trendline, a level that has held price afloat since late 2017
  • Forming a series of lower highs dating back to 2016, the longer-term price chart suggests a break lower may occur
  • Still, support at the 1.3025 level has proved resilient and could keep USD/CAD trapped in its 2019 range

Canadian Dollar Outlook: USD/CAD Plummets to Support, Will it Break Out?

The Canadian Dollar was held to a tight range in 2019 versus the US Dollar, amid a flurry of conflicting fundamental and technical themes. While little progress was made compared to the first few days of the year, USD/CAD was able to establish a series of lower highs over the months, which align with the pair’s longer-term downtrend dating back to 2016. Now, USD/CAD is in position to probe an ascending trendline from September 2017 in a move that could see the pair extend its longer-term losses into the new year if bears are successful.

USD/CAD Price Chart: Weekly Time Frame (January 2016 – December 2019) (Chart 1)

usd cad chart

To be sure, the area near which price currently resides possesses a substantial amount of technical influence within the broader picture and has the potential to refute a move lower. Enjoying support from the trendline around 1.3100 and subsequent buoyancy around the pair’s July swing low at 1.3025. Coupled with the relatively quiet holiday trading conditions, the technical barriers may well stall a move lower for the time being which could allow for another retest of resistance around 1.3200 or even 1.3350.

USD/CAD Price Chart: Daily Time Frame (January - December 2019) (Chart 2)

chart of usd vs cad

That being said, it may only be a matter of time until USD/CAD extends beneath recent lows. Although the Canadian economy is showing signs of weakness, the Bank of Canada’s sole mandate is to control inflation, effectively forbidding rate cuts in pursuit of economic expansion. Since inflation in the Canadian economy is running at or above 2%, the odds of a weaker CAD due to lower interest rates are diminished.

On the other side of the pair, we have the Federal Reserve. When taking stock of the interest rate differential between the two currencies over the last year, it should be of little surprise USD/CAD suffered. Now at the onset of 2020, the Fed has effectively placed itself in a holding pattern as it gauges economic growth and inflation – but has left the door open for further rate cuts.

Consequently, USD/CAD appears to be on a knife’s edge headed into 2020. As the pair runs out of room between the two converging trendlines, traders will have to decide which factors warrant the most influence over price and dictate the appropriate reaction. While I have a slight bearish bias for the longer-term outlook, I believe a serious break lower will likely require another test of resistance overhead before a larger move can develop in the new year. In the meantime, follow @PeterHanksFX on Twitter for updates and analysis.

--Written by Peter Hanks, Junior Analyst for

Contact and follow Peter on Twitter @PeterHanksFX

Read more:Stock Market Crashes: Current Climate Compared to Prior Conditions

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