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
Bearish
GBP/USD
Mixed
USD/JPY
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
Gold
Mixed
Oil - US Crude
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
Bitcoin
Bullish
More View more
Real Time News
  • BoJ Minutes of December Meeting: Most members agreed it was appropriate to continue with easing persistently. Risks to the economy and inflation warrant attention -BBG #BoJ $USDJPY #Yen
  • The $NZD may be on average at risk to further losses against its major counterparts such as the US Dollar and Japanese Yen. Where to for NZD/USD and NZD/JPY from here?. Get your market update from @ddubrovskyFX here:https://t.co/OFjePKYdCb https://t.co/bFZZHtsUso
  • Heads Up:🇯🇵 JPY BOJ Minutes of December Meeting (DEC) due at 23:50 GMT (15min) https://www.dailyfx.com/economic-calendar#2020-01-23
  • 🇯🇵 JPY Natl CPI Ex Fresh Food, Energy (YoY) (DEC), Actual: 0.9% Expected: 0.9% Previous: 0.8% https://www.dailyfx.com/economic-calendar#2020-01-23
  • 🇯🇵 JPY National Consumer Price Index Ex-Fresh Food (YoY) (DEC), Actual: 0.7% Expected: 0.7% Previous: 0.5% https://www.dailyfx.com/economic-calendar#2020-01-23
  • 🇯🇵 JPY National Consumer Price Index (YoY) (DEC), Actual: 0.8% Expected: 0.7% Previous: 0.5% https://www.dailyfx.com/economic-calendar#2020-01-23
  • Heads Up:🇯🇵 JPY Natl CPI Ex Fresh Food, Energy (YoY) (DEC) due at 23:30 GMT (15min), Actual: N/A Expected: 0.9% Previous: 0.8% https://www.dailyfx.com/economic-calendar#2020-01-23
  • Heads Up:🇯🇵 JPY National Consumer Price Index Ex-Fresh Food (YoY) (DEC) due at 23:30 GMT (15min), Actual: N/A Expected: 0.7% Previous: 0.5% https://www.dailyfx.com/economic-calendar#2020-01-23
  • Heads Up:🇯🇵 JPY National Consumer Price Index (YoY) (DEC) due at 23:30 GMT (15min), Actual: N/A Expected: 0.7% Previous: 0.5% https://www.dailyfx.com/economic-calendar#2020-01-23
  • 🇦🇺 AUD CBA Australia PMI Services (JAN P), Actual: 48.9 Expected: N/A Previous: 49.8 https://www.dailyfx.com/economic-calendar#2020-01-23
Weekly Technical Perspective on the Canadian Dollar (USD/CAD)

Weekly Technical Perspective on the Canadian Dollar (USD/CAD)

2018-07-03 16:30:00
Michael Boutros, Technical Strategist
Share:

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. Here are the key targets & invalidation levels that matter on the weekly chart for the US Dollar vs the Canadian Dollar (USD/CAD). 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: In last month’s Weekly Technical Perspective on the Canadian Dollar, we highlighted a breach above confluence resistance in USD/CAD at 1.3103/32 where the 100% extension of the advance converges on the 61.8% retracement of the 2017 range. Price rallied into the 50% Fibonacci retracement of the 2016 decline at 1.3376 with the Loonie posting an outside-day reversal of this threshold yesterday- bearish.

Price is now testing the 1.3103/32 threshold as support and a break lower here would suggest a larger correction is underway targeting the slope confluence just lower around ~1.2970 backed by the 200-week moving average / channel support at ~1.2830s.

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

Bottom line: Look for resist ahead of 1.3288 (61.8% retracement of the recent decline) if this is going to work with a break below 1.31 needed to fuel the next leg lower. Intraday trading levels remain unchanged from last week’s USD/CAD Technical Outlook. Keep in mind we get the release of both US Non-Farm Payrolls (NFP) and Canadian employment on Friday with the releases likely to fuel added volatility in the pair.

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

USD/CAD Trader Positioning

USD/CAD Trader Positioning
  • A summary of IG Client Sentiment shows traders are net-short USD/CAD- the ratio stands at -2.94 (25.4% of traders are long) – bullishreading
  • Traders have remained net-short since May 22nd; price has moved 2.9% higher since then
  • Long positions are 6.5% higher than yesterday and 13.5% lower from last week
  • Short positions are0.3% lower than yesterday and 18.4% lower 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. Yet 3traders are less net-short than yesterday and compared with last week. Recent changes in sentiment warn that the current USD/CAD price trend may soon reverse lower despite the fact traders remain net-short.

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

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

DISCLOSURES

News & Analysis at your fingertips.