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
Real Time News
  • Forex Update: As of 04:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.18% 🇦🇺AUD: 0.17% 🇨🇦CAD: 0.17% 🇪🇺EUR: 0.04% 🇬🇧GBP: 0.04% 🇯🇵JPY: -0.04% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/F8VIsGLTZK
  • Indices Update: As of 04:00, these are your best and worst performers based on the London trading schedule: France 40: 0.61% FTSE 100: 0.37% Germany 30: 0.37% Wall Street: 0.11% US 500: -0.07% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/B2O626AOd4
  • Is the Japanese Yen Hitting a Turning Point? - #USDJPY chart on @TradingView https://t.co/wF2NGNapKc
  • Heads Up:🇹🇭 Balance of Trade (SEP) due at 03:30 GMT (15min) Expected: $-0.8B Previous: $-1.22B https://www.dailyfx.com/economic-calendar#2021-10-22
  • Stock markets may be vulnerable to political volatility as China flexes its military might against Taiwan ahead of the Biden-Xi summit. Will reconciliation yield to rockets? Find out from @ZabelinDimitri here:https://t.co/YscFLDpan6 https://t.co/CoJhC9vHpB
  • Commodities Update: As of 02:00, these are your best and worst performers based on the London trading schedule: Gold: 0.20% Silver: 0.19% Oil - US Crude: -0.09% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/HrKCRbsUJP
  • Forex Update: As of 02:00, these are your best and worst performers based on the London trading schedule: 🇦🇺AUD: 0.20% 🇳🇿NZD: 0.19% 🇨🇦CAD: 0.15% 🇨🇭CHF: 0.03% 🇬🇧GBP: 0.01% 🇯🇵JPY: -0.12% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/b3hu5OEDFQ
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 90.58%, while traders in USD/JPY are at opposite extremes with 77.23%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/Ghq29hRjlq
  • RT @josh_wingrove: Biden went to Baltimore and gave the biggest update yet on the Congressional talks, said the corporate tax rate won’t ri…
  • Gold prices are under pressure after China growth slowed and New Zealand inflation surged, with investors pricing in more aggressive central bank policy outlooks, which is supporting bond yields.Get your market update from @FxWestwater here:https://t.co/9Jiy8IKqQv https://t.co/7ncLoSYQre
CAD Weekly Tech Forecast (Mixed): Choppy Price Action or Coil Ahead of Fed Meeting?

CAD Weekly Tech Forecast (Mixed): Choppy Price Action or Coil Ahead of Fed Meeting?

Richard Snow, Analyst

USD/CAD Technical Analysis:

  • Canadian Dollar technical trade levels – Daily and Weekly Charts
  • USD/CAD pushes higher after week of consolidation around the weekly open
  • IG Client Sentiment suggests a ‘mixed’ trading environment despite heavy long positioning
Advertisement

USD/CAD Technical Outlook: Weekly View and Daily Trade Levels

USD/CAD looks to have bottomed out in June this year as prices have traded higher ever since. However, the bullish momentum has not exactly been straight-forward as we have witnessed price spikes and deep pullbacks recently.

The weekly chart shows two consecutive weeks of gains but prices are still a fair distance away from the recent high – contributing to the mixed trading bias. Those looking for bullish continuation plays will be interested to see if next week USD/CAD remains above the 23% Fib level (drawn from the march 2020 high to the May 2021 low) at 1.2630.

USD/CAD Weekly Chart

USD/CAD Chart

Chart prepared by Richard Snow, IG

Heading into the week which plays host to the last scheduled Fed meeting of Q3, markets may be anticipating a more hawkish message as the dollar continued to trade higher against its peers in the lead up. Continued dollar strength cannot be ruled out but the current technical setup offers very little as far as bullish or bearish biases are concerned, apart from the broader uptrend which remains intact.

Breaks of the immediate support and resistance levels may provide an indication of future price action in the search of strong one-sided momentum to propel this market out of the current consolidation.

The nearest zone of resistance comes in around 1.2770 (red zone) with a really large stretch needed to retest the August high. The 23% Fib mentioned earlier, acted as resistance during March and April and now provides a near-term level of support, followed by the 1.2590 level and finally, the 1.2520 mark

USD/CAD Daily Chart

USD/CAD Chart

Chart prepared by Richard Snow, IG

USD/CAD Sentiment Reflects Current Trading Environment: Mixed

IG client long sentiment has reduced drastically since USD/CAD printed its low and although a healthy portion of traders remain long, the outlook remains mixed.

CAD Weekly Tech Forecast (Mixed): Choppy Price Action or Coil Ahead of Fed Meeting?
  • USD/CAD: Retail trader data shows 68.21% of traders are net-long with the ratio of traders long to short at 2.15 to 1
  • We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests USD/CAD prices may continue to fall.
  • The number of traders net-long is 8.26% lower than yesterday and 7.28% higher from last week, while the number of traders net-short is 0.53% lower than yesterday and 17.47% lower from last week.
  • Positioning is less net-long than yesterday but more net-long from last week. The combination of current sentiment and recent changes gives us a further mixed USD/CAD trading bias.

--- Written by Richard Snow for DailyFX.com

Contact and follow Richard on Twitter: @RichardSnowFX

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

DISCLOSURES