Never miss a story from Michael Boutros

Subscribe to receive daily updates on publications
Please enter valid First Name
Please fill out this field.
Please enter valid Last Name
Please fill out this field.
Please enter valid email
Please fill out this field.
Please select a country

I’d like to receive information from DailyFX and IG about trading opportunities and their products and services via email.

Please fill out this field.

Your Forecast Is Headed to Your Inbox

But don't just read our analysis - put it to the rest. Your forecast comes with a free demo account from our provider, IG, so you can try out trading with zero risk.

Your demo is preloaded with £10,000 virtual funds, which you can use to trade over 10,000 live global markets.

We'll email you login details shortly.

Learn More about Your Demo

You are subscribed to Michael Boutros

You can manage your subscriptions by following the link in the footer of each email you will receive

An error occurred submitting your form.
Please try again later.

In this series we scale-back and take a look at the broader technical picture to gain a bit more perspective on where we are in trend. The Canadian Dollar has been under tremendous pressure since the start of the year with USD/CAD rallying more than 8% off the yearly lows. The advance has taken price through multi-year slope resistance and keeps broader focus weighted to the topside. Here are the key levels that matter on the USD/CAD weekly chart. Review this week’s Strategy Webinar for an in-depth breakdown of this setup and more.

New to Forex Trading? Get started with this Free Beginners Guide

USD/CAD Weekly Price Chart

USD/CAD Weekly Price Chart

Notes: USD/CAD broke through the upper parallel of a descending pitchfork formation extending off the 2016 highs last week with price closing above a confluence Fibonacci zone at 1.3103/32. The pair is attempting to breach 2017 channel resistance this week with such a scenario targeting subsequent topside objectives eyed at 1.3423. Interim support rest back at 1.31 with broader bullish invalidation down at the trendline confluence around ~1.2980s.

For a complete breakdown of Michael’s trading strategy, review his Foundations of Technical Analysis series on Building a Trading Strategy

Bottom line: IF this breakout has legs, look for entries on a pullback towards 1.3103/32. A weekly close above the near-term slope (purple) would be needed to keep the focus higher targeting 1.3423 backed by more significant resistance at the 2017 high-week close / 61.8% retracement (of the 2016 decline) at 1.3647/85.

Even the most seasoned traders need a reminder every now and then-Avoid these Mistakes in your trading

USD/CAD IG Trader Sentiment

USD/CAD Trader Sentiment
  • A summary of IG Client Sentiment shows traders are net-short USD/CAD- the ratio stands at -2.42 (29.3% of traders are long) –bullishreading
  • Traders have remained net-short since May 22nd; price has moved 3.0% higher since then
  • Long positions are 2.2% higher than yesterday and 11.3% lower from last week
  • Short positions are8.0% higher than yesterday and 26.4% 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. Traders are further net-short than yesterday and last week, and the combination of current positioning and recent changes gives us a stronger USD/CAD-bullish contrarian trading bias from a sentiment standpoint.

See how shifts in USD/CAD retail positioning are impacting trend- Learn more about sentiment!

Relevant USD/CAD Data Releases

USD/CAD Economic Calendar

Economic Calendar– for the latest economic developments and upcoming event risk

Previous Weekly Technical Perspectives

--- Written by Michael Boutros, Technical Currency Strategist with DailyFX

Follow Michael on Twitter @MBForex or contact him at mboutros@dailyfx.com