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
Mixed
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
Oil - US Crude
Mixed
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
Wall Street
Mixed
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
GBP/USD
Mixed
USD/JPY
Mixed
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
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.13%, while traders in US 500 are at opposite extremes with 77.35%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/ekCFqINyBa
  • Commodities Update: As of 10:00, these are your best and worst performers based on the London trading schedule: Silver: 0.82% Gold: 0.48% Oil - US Crude: -3.01% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/H5md2j1fC1
  • Gold prices have continued to push higher as expectations have built for global Central Banks to remain very loose and passive with monetary policy for the foreseeable future. Get your $XAUUSD technical analysis from @JStanleyFX here: https://t.co/h5tF3kAZfd https://t.co/oqAjsNXNBY
  • Worth going along to...👍👍👍 #charts #technicalanalysis Click the link below 👇👇👇 https://t.co/At4Kj3vyOK
  • Forex Update: As of 10:00, these are your best and worst performers based on the London trading schedule: 🇪🇺EUR: 0.49% 🇯🇵JPY: 0.46% 🇦🇺AUD: 0.39% 🇳🇿NZD: 0.19% 🇨🇦CAD: 0.17% 🇬🇧GBP: -0.08% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/AgsGuOjCpX
  • EU is set to express grave concern over China's recent actions with regard to Hong Kong
  • 🇬🇧 Gfk Consumer Confidence Final Actual: -34 Expected: -34 Previous: -33 https://www.dailyfx.com/economic-calendar#2020-05-29
  • 🇵🇹 GDP Growth Rate YoY Final Actual: -2.3 Expected: -2.4% Previous: 2.2% https://www.dailyfx.com/economic-calendar#2020-05-29
  • 🇵🇹 GDP Growth Rate QoQ Final Actual: -3.8 Expected: -3.9% Previous: 0.7% https://www.dailyfx.com/economic-calendar#2020-05-29
  • Indices Update: As of 10:00, these are your best and worst performers based on the London trading schedule: US 500: 0.10% Wall Street: 0.01% France 40: -1.00% FTSE 100: -1.11% Germany 30: -1.35% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/PQvHUdi6ES
USD/CAD Technical Analysis: Bullish Engulfing Daily Candle Keeps Focus Up

USD/CAD Technical Analysis: Bullish Engulfing Daily Candle Keeps Focus Up

2015-09-18 19:21:00
Tyler Yell, CMT, Currency Strategist
Share:

To receive Tyler’s analysis directly via email, please SIGN UP HERE

Talking Points:

  • USD/CAD Technical Strategy: Waiting for Downward Corrective Channel to Play Out
  • 55 Day (1.3045-1.3073) Moving Average Support Is Under Threat
  • Stronger Move Down Indicated On Daily Close Below 1.2950

The Canadian Dollar remained within its falling corrective channel and saw the lowest levels since Mid-August this week. USDCAD continued its consolidation sideways after the USDOLLAR sold-off on the Federal Reserve’s dovish comments after holding rates near 0%. Momentum is hitting levels not seen since the turn higher in late June and longer-term technical studies like Ichimoku Cloud still expect support to hold on a longer-term basis. Friday saw a bullish reversal off median line support keeping the bull’s hopes alive for a resumption of the larger uptrend.

Those long USDCAD seemed to have unwound their position after a disappointing failure around the 34-mva. However, the hold of 1.2950 appears to be instilling confidence as Friday is closing on 2-day highs, a very bullish sign. Additionally, the post-FOMC sell-off did not see a break of the 1.3000 level, which has psychological importance. Lastly, the turn lower this morning around 1.3012 was off the 78.6% Fibonacci retracement level of the August price range that we have since traveled through.

This morning’s rebound has endorsed the larger call for a move higher however, more evidence is warranted after the near-300 pip drop from late last week. A daily close above 1.3200 with a stop at the recent low of 1.3012 targeting 1.3500 would be the preferred swing approach. This would align with a ~1:1.5 risk: reward and stay aligned with the larger trend after resistance had broken. The continued retreat in the correlated crude oil markets would further enforce the long set-up above 1.2950 on a weekly close basis.

Add these technical levels directly to your charts with our Support/Resistance Wizard app!

USD/CAD Technical Analysis: Bullish Engulfing Daily Candle Keeps Focus Up

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

DISCLOSURES

News & Analysis at your fingertips.