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
EUR/USD
Bearish
Oil - US Crude
Mixed
Wall Street
Mixed
Gold
Bearish
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
Bearish
USD/JPY
Bullish
More View more
Real Time News
  • Traders tend to overcomplicate things when they’re starting out in the forex market. This fact is unfortunate but undeniably true.Simplify your trading strategy with these four indicators here:https://t.co/A4dqGMPylo https://t.co/yZzArpGs2h
  • GBP turbulence persists as investors eye the next round of EU-UK Brexit negotiations. Cautious optimism signals a deal is near. Get your #currencies update from @JMcQueenFX here: https://t.co/WjU4oYpmf7 https://t.co/VcNnCjm0B2
  • An economic calendar is a resource that allows traders to learn about important economic information scheduled to be released. Stay up to date on the most important global economic data here: https://t.co/JdvW6HNuqV https://t.co/AiLoS7DrEQ
  • Many people are attracted to forex trading due to the amount of leverage that brokers provide. Leverage allows traders to gain more exposure in financial markets than what they are required to pay for. Learn about FX leverage here: https://t.co/3Wked6GBOp https://t.co/HicBmGrokK
  • There is a great debate about which type of analysis is better for a trader. Is it better to be a fundamental trader or a technical trader? Find out here:https://t.co/7kPzAoNoLG https://t.co/5lbyBJeeA7
  • Entry orders are a valuable tool in forex trading. Traders can strategize to come up with a great trading plan, but if they can’t execute that plan effectively, all their hard work might as well be thrown out. Learn how to place entry orders here: https://t.co/lAFyv1gM0P https://t.co/ubLimoYAcr
  • What is the outlook for financial markets ahead of the first presidential debate and how are Democratic nominee Joe Biden and President Donald Trump doing in the polls? Find out from @ZabelinDimitri here:https://t.co/QQwAZTxZFg https://t.co/4cRhRCiv3C
  • The US Dollar could gain as it forms bullish technical formations against the Singapore Dollar and Malaysian Ringgit. USD/PHP may have bottomed, will USD/IDR rise next? Find out from @ddubrovskyFX here:https://t.co/3UIKmbLIvD https://t.co/PY2YyH4vkQ
  • The Indian Rupee may be at risk to the US Dollar as USD/INR attempts to refocus to the upside. This is as the Nifty 50, India’s benchmark stock index, could fall further. Get your $USDINR market update from @ddubrovskyFX here:https://t.co/3wsYlSxd26 https://t.co/z2qB9p8IgX
  • A proxy of #EmergingMarket capital flows hit its lowest since July, falling with the #SP500 after some divergence This is as #USD gained against its developing FX counterparts, highlighting potential risk of a spillover outwards Stay tuned for next week's #ASEAN fundy outlook! https://t.co/kAvpnb0EXO
USD/CAD - Minor Top or Just A Consolidation?

USD/CAD - Minor Top or Just A Consolidation?

2015-08-21 14:25:00
Kristian Kerr, Sr. Currency Strategist
Share:

Talking Points

  • USD/CAD testing key support zone
  • Broader technical picture still quite positive

Unfamiliar with Gann Square Root Relationships? Learn more about them HERE.

USD/CAD continues to chop around in a sideways to lower range below the 1.3212 multi-year high recorded earlier in the month. Following the breakout in July above the 2009 high the medium-to long-term technical outlook is clearly favorable with a move through Fibonacci resistance at 1.3170 and of course the high at 1.3212 needed to set off a run higher towards the 61.8% retracement of the 2002 – 2007 decline near 1.3500. The current correction from the high has been relatively tame thus far given some of the other moves in G10 FX. Of course a lot of this has to do with the relentless offer in crude, though with sentiment in the commodity falling to contrarian “red flag” levels of just 6% bulls yesterday the time may be approaching for at least a modest turn around in oil and CAD. The low end of a median line channel drawn from the May low has supported downside attempts thus far, but is getting tested again today. A daily close below this level (currently around 1.3080) would be an early warning sign that the correction is starting to gain some traction. However, a clear break of last week’s low near 1.2950 is probably needed to turn the near-term technical picture more convincingly negative.

To receive other reports from this author via e-mail, sign up to Kristian’s e-mail distribution list via this link.

USD/CAD Daily Chart: August 21, 2015

USD/CAD - Minor Top or Just A Consolidation?

Chart Prepared by Kristian Kerr

LEVELS TO WATCH

Resistance: 1.3170 (Fibonacci), 1.3212 (MTD high)

Support: 1.3080 (Andrews), 1.2950 (MTD low)

Strategy: Sell USD/CAD on a break

Entry: More aggressive traders can look to sell funds on a close below 1.3080 while my conservative traders can wait for a move under 1.2950 before looking to sell on rallies.

Stop: Daily close back over 1.3170

Target: Open

--- Written by Kristian Kerr, Senior Currency Strategist for DailyFX.com

To contact Kristian, e-mail instructor@dailyfx.com. Follow me on Twitter at@KKerrFX.

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

DISCLOSURES