Skip to content
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
More View more
USD/CAD Technical Forecast: Pullback in Danger of Becoming a Reversal

USD/CAD Technical Forecast: Pullback in Danger of Becoming a Reversal

Paul Robinson, Strategist

CAD Technical Outlook

  • USD/CAD’s sizable pullback brings into question the upside
  • The coming days could be important to the next few weeks
Advertisement

USD/CAD Technical Forecast: Pullback in Danger of Becoming a Reversal

USD/CAD rallied fiercely post June Fed meeting, but since then it has run aground and retreated. Some backing-and-filling was expected even if higher prices were to come. But the size of the retracement is a bit concerning and we’ll need to see a firm floor soon, else the pullback could quickly morph into a new leg lower in the cycle dating to March of last year.

A break below 12252 will have the reversal play gaining more momentum and at that juncture the top of the range it broke out of at 12144 will come into focus as the next level of support. At that point, a move to a new cycle low below 12000 will become the risk.

On flip-side, higher prices are still in play but some work will need to be done. Ideally, we see the low at 12252 hold up and a firm push higher from here develop. This could begin to build a sideways pattern of consolidation that would help lead USD/CAD above the December trend-line towards 12630+.

This coming week could be a pivotal one depending on how things play out, so for the immediate future it may take a little patience before we can develop a bias with conviction in either direction.

USD/CAD Daily Chart

Please add a description for the image.

USD/CAD Charts by TradingView

Resources for Forex Traders

Whether you are a new or experienced trader, we have several resources available to help you; indicator for tracking trader sentiment, quarterly trading forecasts, analytical and educational webinars held daily, trading guides to help you improve trading performance, and one specifically for those who are new to forex.

---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.

DISCLOSURES