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.

Free Trading Guides
EUR/USD
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
GBP/USD
Mixed
USD/JPY
Mixed
Gold
Bullish
Oil - US Crude
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
Bitcoin
Mixed
More View more
Real Time News
  • Get your stock market basics right - what is the stock market and how does stock trading work? Find out here: https://t.co/JfAJLAtlsY https://t.co/ZfPUxHWeiG
  • The Mexican economy contracted for the first time in almost 10 years in 2019, but growth is expected to pick up in 2020 according to its finance minister. Get your $USDMXN market update from @HathornSabin here: https://t.co/gupJdU7WYT https://t.co/mMN8LFb5i5
  • EUR/USD has been weakening since the start of 2020 and the decline has accelerated this month. At some point there will be a correction but further losses are still likely as the year progresses. Get your $EURUSD market update from @MartinSEssex here: https://t.co/ieJUBNeAIf https://t.co/Dw4f7DQocg
  • The $AUD has risen in anticipation of a deal Washington and Beijing. But the Australia-China trade relationship has not suffered much and may even have been helped by China’s spat with the US. Get your market update from @DavidCottleFX here:https://t.co/An7h5X0Zcz https://t.co/Rn7mLbS1EF
  • How can traders avoid #FOMO in trading? Start by implementing a well-heeled plan taking only four hours per week. Get your insight from @JStanleyFX here: https://t.co/vwUShQPc27 #tradingstyle https://t.co/0Wn4xBL0AY
  • Do you know which type of stock is the right investment for you? Stock types help investors decide on specific #stocks to trade or assist with valuation methods either fundamentally or technically. Learn more about stock types here: https://t.co/yO3JalkqUU https://t.co/RoNdExHAdt
  • The status of the US #dollar as the safe-haven asset of choice remains untouched and any weakness in the greenback is likely to be short-lived. Get your $USD market update from @nickcawley1 here: https://t.co/LO2u38jpUT https://t.co/ctgCJSOeTH
  • #FTSE 100 testing key support as the index lacks a directional bias. #DAX reverses off channel top. Get your indices technical analysis from @JMcQueenFX here: https://t.co/IHF2dgMfg9 https://t.co/2fMTFlOeTR
  • With knowledge of price action, traders can perform a wide range of technical analysis functions without the necessity of any indicators, including management of risk. Build on you knowledge of price action here: https://t.co/9hQA0bsYtt https://t.co/5KQowxuiBf
  • The term ‘Ichimoku,’ literally means ‘one glance,’ in Japanese. Ichimoku, or the one glance indicator, is considered to be a self-contained system in the fact that no additional indicators are necessary. Learn more about the 'one glance' indicator here: https://t.co/T7o7W9C0Ro https://t.co/7bhBfWvEkR
Canadian Dollar Forecast: USD/CAD Reverses Near Resistance, Will it Continue Lower?

Canadian Dollar Forecast: USD/CAD Reverses Near Resistance, Will it Continue Lower?

2020-02-12 22:00:00
Peter Hanks, Junior Analyst
Share:

USD/CAD Outlook:

  • USD/CAD has surged to start the year, rallying from 1.2976 in January to 1.3329 earlier this week
  • The formation of an evening star on Monday highlighted the risk of a reversal lower which materialized on Tuesday and Wednesday and could threaten to erase further bullish progress
  • That being said,IG Client Sentiment Data reveals retail traders remain overwhelmingly short USD/CAD, a potential sign of further bullishness

Canadian Dollar Price Forecast

USD/CAD staged a remarkable rally to start the year, surging from 1.2976 in early January to 1.3329 earlier this week before posting an evening star formation on Monday and subsequently declining since. While the initial reaction was confident at first, a long lower wick on Wednesday could hint at waning bearish interest heading into the second half of the week as support beneath comes into view.

USD/CAD Price Chart: Daily Time Frame (January 2019 – February 2020)

canadian dollar daily chart and forecast

To that end, the Dollar’s January rally allowed USD/CAD to recapture the 200-day moving average and a series of technical levels around 1.32 which should lend assistance if bearishness continues. Consequently, a deeper pullback would allow the pair to consolidate further which could be productive for longer-term gains. Still, IG Client Sentiment Data suggests USD/CAD may continue higher still as the vast majority of retail traders trading the pair through IG are net-short, a fact we typically view to be bullish.

USD/CAD MIXED
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily -22% -18% -19%
Weekly 4% -35% -28%
What does it mean for price action?
Get My Guide

Therefore, if a continuation higher does emerge, a daily close above horizontal resistance around 1.3340 would be the first requirement in a larger rally since the level has stalled previous attempts throughout the last six months. Secondary resistance is not far off, resting around the 1.3373 area which could make an extension higher difficult. In the meantime, follow @PeterHanksFX on Twitter for updates and sign up for my webinar below for a deeper look at USD/CAD using sentiment data.

Starts in:
Live now:
Feb 27
( 16:02 GMT )
Recommended by Peter Hanks
Trader's Toolbox: How to Identify Price Trends with Trader Sentiment
Register for webinar
Join now
Webinar has ended

--Written by Peter Hanks, Junior Analyst for DailyFX.com

Contact and follow Peter on Twitter @PeterHanksFX

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

DISCLOSURES

News & Analysis at your fingertips.