CAD Technical Forecast: USD/CAD Near Important Long-term Low
CAD Technical Outlook
- USD/CAD broke 2018 low last week
- Could see the 2017 low in the days ahead
- Neutral to bearish trading bias
CAD Technical Forecast: USD/CAD Very Near Important Long-Term Low
Last week, USD/CAD continued its run of weakness with only a hesitation at the 2018 low before firmly breaking it on Thursday. Looking ahead to this coming week, the 2017 low, an important multi-year low, could come into play. And early.
The 2017 low resides at 12061; a break below there will have USD/CAD at its worst levels since 2015. In the initial brush with this low, it is anticipated that some type of reaction will occur. But in the absence of a really strong reaction and hold of any initial bounce, the trading bias at best will be neutral.
For would-be shorts, there isn’t much room until we reach that low – unless you are looking for very short-term trades, then trading downside momentum may offer some opportunity. For those looking to hold for a few days or longer, risk/reward isn’t favorable at this juncture.
It will take a little work around the 2017 low to pique interest from the long-side. A strong bounce would be good for starters.
USD/CAD Weekly Chart
USD/CAD Daily Chart
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---Written by Paul Robinson, Market Analyst
You can follow Paul on Twitter at@PaulRobinsonFX
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.