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.

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
EUR/USD
Bearish
Oil - US Crude
Mixed
Wall Street
Mixed
Gold
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
GBP/USD
Bearish
USD/JPY
Bullish
More View more
Real Time News
  • GBP turbulence persists as investors eye the next round of EU-UK Brexit negotiations. Cautious optimism signals a deal is near. Get your #currencies update from @JMcQueenFX here: https://t.co/WjU4oYpmf7 https://t.co/VcNnCjm0B2
  • An economic calendar is a resource that allows traders to learn about important economic information scheduled to be released. Stay up to date on the most important global economic data here: https://t.co/JdvW6HNuqV https://t.co/AiLoS7DrEQ
  • Many people are attracted to forex trading due to the amount of leverage that brokers provide. Leverage allows traders to gain more exposure in financial markets than what they are required to pay for. Learn about FX leverage here: https://t.co/3Wked6GBOp https://t.co/HicBmGrokK
  • There is a great debate about which type of analysis is better for a trader. Is it better to be a fundamental trader or a technical trader? Find out here:https://t.co/7kPzAoNoLG https://t.co/5lbyBJeeA7
  • Entry orders are a valuable tool in forex trading. Traders can strategize to come up with a great trading plan, but if they can’t execute that plan effectively, all their hard work might as well be thrown out. Learn how to place entry orders here: https://t.co/lAFyv1gM0P https://t.co/ubLimoYAcr
  • What is the outlook for financial markets ahead of the first presidential debate and how are Democratic nominee Joe Biden and President Donald Trump doing in the polls? Find out from @ZabelinDimitri here:https://t.co/QQwAZTxZFg https://t.co/4cRhRCiv3C
  • The US Dollar could gain as it forms bullish technical formations against the Singapore Dollar and Malaysian Ringgit. USD/PHP may have bottomed, will USD/IDR rise next? Find out from @ddubrovskyFX here:https://t.co/3UIKmbLIvD https://t.co/PY2YyH4vkQ
  • The Indian Rupee may be at risk to the US Dollar as USD/INR attempts to refocus to the upside. This is as the Nifty 50, India’s benchmark stock index, could fall further. Get your $USDINR market update from @ddubrovskyFX here:https://t.co/3wsYlSxd26 https://t.co/z2qB9p8IgX
  • A proxy of #EmergingMarket capital flows hit its lowest since July, falling with the #SP500 after some divergence This is as #USD gained against its developing FX counterparts, highlighting potential risk of a spillover outwards Stay tuned for next week's #ASEAN fundy outlook! https://t.co/kAvpnb0EXO
  • 4 consecutive down weeks for the #SP500, last matched over a year ago #Fed balance sheet continues to gain very cautiously, now at its highest since the middle of June. Still, at slower pace than last week Focus shifts to US fiscal stimulus next week in the House of Reps https://t.co/f8zpSILm86
USD/CAD Technical Analysis: Long-Term Uptrend Being Tested

USD/CAD Technical Analysis: Long-Term Uptrend Being Tested

2015-10-02 19:22:00
Tyler Yell, CMT, Currency Strategist
Share:

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

Talking Points:

  • USD/CAD Technical Strategy: Testing The Higher-Low Progressions at 1.3012
  • 1.3168 Is 61.8% Fibonacci Retracement Of 1.3012-1.3457 Range
  • USD/CAD Drops Just Shy Of 300 Pip From Highs This Week Of 1.3457

After printing at 11 year low, USDCAD is about to take out last week's low signaling a turnaround in the Loonie. In fact, a close below 1.3175 would set-up a bearish key week reversal, an ominous ending pattern on weekly candles. This incredibly strong trend looks to be wobbling and could retest recent support of 1.30 and 1.2950 on a confirmed. Many traders been excited about this because of oil'sdemise, but a break of those key levels will call into question the structural integrity of the uptrend and likely attract more sellers.

The exact level of focus is 1.3012, the September low and recent low we saw that respected the 1.2950 previous low. The 1.2950 low came at multiple technical confluence points showing that the bounce respected the larger trend. Considering the follow through move off 1.2950 gave us 11-year highs it’s easy to see this as key resistance. We’re working on our 3rd lower day, which we have seen since the end of August. Focus now will be on 1.2950 where a break would significantly damage the immediate view higher.

Given the larger US dollar view, a bounce around these levels followed by a break of short-term resistance would help validate the bullish continuation view. If we see a break and close below 1.2950 would open the door to start focusing on selling short term strength and looking for a deeper retracement. SSI shows that long positions have grown 46% over the last week, which may be an indication that a turn is coming as this number is aggressive. Lastly, the correlation of USOil and USDCAD continue to be inverse and worth focusing on. A break below $43.19 per barrel on US Oil would likely validate the push higher and USDCAD whereas a break above $49.49 would favor the contrarian view that a sustained push lower is upon us.

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

USD/CAD Technical Analysis: Long-Term Uptrend Being Tested

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

DISCLOSURES