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.

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
Subscribe
Please try again
Wall Street
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
More View more
Real Time News
  • Looking for a new way to trade reversals? One of the most used reversal candle patterns is known as the Harami. Like most candlestick formation patterns, the Harami tells a story about sentiment in the market. Get better with trading reversals here: https://t.co/rfwUWJfbz9 https://t.co/Q3Yfe6TMLw
  • The non-farm payroll (NFP) figure is a key economic indicator for the United States economy. It is also referred to as the monthly market mover. Find out why it has been given this nickname here: https://t.co/yOUVEEqhc5 https://t.co/6inC94w5K4
  • All eyes on the Fed on Wednesday as investors weigh on chances of a taper announcement. Get your weekly equities forecast from @HathornSabin here: https://t.co/Cv06XcvldF https://t.co/I12g2YPkdE
  • Knowing how to accurately value a stock enables traders to identify and take advantage of opportunities in the stock market. Find out the difference between a stock's market and intrinsic value, and the importance of the two here: https://t.co/QszmdZFxlk https://t.co/KsPiWBysiR
  • GDP (Gross Domestic Product) economic data is deemed highly significant in the forex market. GDP figures are used as an indicator by fundamentalists to gauge the overall health and potential growth of a country. Learn use GDP data to your advantage here: https://t.co/Yl9vM7kO6a https://t.co/iUvhLfQgcK
  • The US Dollar caught a bid in the late part of last week to set a fresh September high. FOMC is around the corner, are bulls going to be able to push for another fresh high? Get your weekly US Dollar forecast from @JStanleyFX here: https://t.co/ZkDHyV1VhM https://t.co/w5sPChKdNx
  • The Federal Reserve System (the Fed) was founded in 1913 by the United States Congress. The Fed’s actions and policies have a major impact on currency value, affecting many trades involving the US Dollar. Learn more about the Fed here: https://t.co/ADSC4sIHrP https://t.co/bde30KM8OE
  • The Australian Dollar remains vulnerable to most of its major counterparts, with AUD/USD and AUD/JPY resuming losses. Did AUD/NZD bottom? AUD/CAD may consolidate. Get your weekly Australian Dollar forecast from @ddubrovskyFX here: https://t.co/sjh91mjtXs https://t.co/dGT067zKnH
  • Technical analysis of charts aims to identify patterns and market trends by utilizing differing forms of technical chart types and other chart functions. Learn about the top three technical analysis tools here: https://t.co/KDjIjLdTSk https://t.co/VLZQhrQTAf
  • The ISM manufacturing index plays an important role in forex trading, with ISM data influencing currency prices globally. Learn about the importance of the ISM manufacturing index here: https://t.co/Xr3xtoFpZy https://t.co/j5xDAG6LLb
Price Action Muted for USDCAD Until Next Decisive Move

Price Action Muted for USDCAD Until Next Decisive Move

Richard Dvorak,

Talking Points:

  • USDCAD seems to continue rangebound channel until decisive break
  • Short term weakness after retesting 1.335-1.340 range
  • Long term bullish move remains intact with current price consolidating between trendlines

Technical Forecast for USDCAD:Neutral

The USDCAD will be a closely watched currency pair this week due to Bank of Canada’s interest rate decision in addition to economic data releases on employment and manufacturing coming out of both the US and its neighbor to the North. While IG client sentiment remains bullish with a 69 percent net short positioning, the short term technical picture appears ambiguous. The currency pair has seen a stable ascent since the beginning of October from 1.280-1.335 in a tightly compressed channel. The narrow, choppy trading range epitomized the “buy low sell high” paradigm with a correlation of 0.92.

Price Chart of USDCAD (240-Minute Bars)

USDCAD PRICE CHART

The slow and steady climb higher established a strong bullish trend which has been accompanied by a handful of consecutive higher lows and higher highs. With the spot price a few pips below its midpoint regression line, traders will look to see if the trend will continue rising or if USDCAD will see a shift in price movement. By taking notice of the Relative Strength Index (RSI), an indication of whether the currency is oversold or overbought, one can see that although the metric is diverging from the standard overbought level of 70, the upward trend is still clearly in play.

Price Chart of USDCAD (240-Minute Bars)

USDCAD PRICE CHART

Transitioning to a different perspective, however, the exchange rate appears to be losing its momentum. After retesting the highs from June of this year at the 1.335-1.340 range, the USDCAD quickly sold off from resistance. But, the long term upward trend remains healthy and price movement looks to coil between the trendlines shown below.

Price Chart of USDCAD (60-Minute Bars)

USDCAD PRICE CHART

Until a decisive move is seen where the trendlines break, caution is warranted before forming a bullish or bearish bias given the murky fundamental drivers behind the currency pair’s performance. Once the trendlines are broken and a breakout is confirmed, the bullish upward momentum will continue, or a decisive reversal lower could be in the near future. If the upper trendline is broken, the USDCAD may quickly jump to retest the recent high at 1.336. But, if the bears take control a sizeable move lower and trend reversal would be on the horizon and could move down to the Fibonacci retracement levels lists support at the 1.324 and 1.314 area.

Price Chart of USDCAD (240-Minute Bars)

USDCAD PRICE CHART

Other Weekly Technical Forecast:

Australian Dollar Forecast: AUD/USD, AUD/JPY May Fall as EUR/AUD Gains

British Pound Forecast: Weekly-Technical-Outlook-Sterling-Probes-New-Lows

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

DISCLOSURES