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
Bullish
Oil - US Crude
Bullish
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
Bullish
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
Bullish
USD/JPY
Bearish
More View more
Real Time News
  • The growth-linked New Zealand Dollar may rise on the upcoming #RBNZ rate decision following rosy economic data. However, downside potential in the S&P 500 could offset $NZDUSD gains. Get your #currencies update from @ddubrovskyFX here: https://t.co/LfCe6C6G3P https://t.co/kUeBxxeaEf
  • It was a quiet week in Aussie as $AUDUSD put in its second consecutive week of indecision. But taking a more granular look highlights the potential for a reversal scenario. Get your #currencies update from @JStanleyFX here: https://t.co/PPK20nubAf https://t.co/0nfmRRFNnz
  • The S&P 500 pushed the market's comfort with a head-and-shoulders pattern through Friday's close. What should we look for in technical patterns, overlapping fundamental tides and speculative positioning for the likes of $EURUSD next week? https://www.dailyfx.com/forex/video/daily_news_report/2020/09/19/EURUSD-Pressure-Building-while-Anxious-Traders-Weigh-Did-SP-500-Break.html?ref-author=Kicklighter&QPID=917719&CHID=9 https://t.co/lgVJVwi8th
  • Sterling remains trapped by overarching fundamentals drivers and both $GBPUSD and $EURGBP are going to have to wait until the Brexit dust settles. Get your #currencies update from @nickcawley1 here: https://t.co/vF1K1cy0nd https://t.co/NSA7qiQihc
  • Key levels in forex tend to draw attention to traders in the market. These are psychological prices which tie into the human psyche and way of thinking. Learn about psychological levels here:https://t.co/1oygcFMFNs https://t.co/d9EmTOHyTv
  • Traders tend to overcomplicate things when they’re starting out in the forex market. This fact is unfortunate but undeniably true.Simplify your trading strategy with these four indicators here:https://t.co/A4dqGMPylo https://t.co/xqbUxwWgTZ
  • 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/Gi8LHCT5sB
  • The AB=CD pattern is simple once you know how to spot it and draw the proper Fibonacci retracements. Make your trading strategy as simple as ABCD here: https://t.co/AKmlmaAZBS https://t.co/FFmRYyx4ou
  • 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/aVAzFypAg1 https://t.co/r7aJb4qpqc
  • There’s a strong correlation between interest rates and forex trading. Forex is ruled by many variables, but the interest rate of the currency is the fundamental factor that prevails above them all. Learn how interest rates impact currency markets here: https://t.co/ERyiY47G5H https://t.co/fIGDaDW21V
USD/CAD Technical Analysis: Long-Term Rising Wedge Breakdown

USD/CAD Technical Analysis: Long-Term Rising Wedge Breakdown

2015-10-19 20:01:00
Tyler Yell, CMT, Currency Strategist
Share:

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

Talking Points:

  • USD/CAD Technical Strategy: Focus on Support at 1.2830
  • Short-Term Resistance Sits near 1.3080-1.3150
  • 38.2% Fibonacci Resistance Near1.31

The Canadian Dollar broke out of its 4-month rising impulsive channel rather aggressively. This drop brought about a 600 pip decline from the late September high of 1.3457 to a current corrective low of 1.2833. This is the lowest level since the Bank of Canada surprised markets with a rate cut and USDCAD went from ~1.21 to 1.3450 in short order. Since then, Oil has regained some footing and if you remove the 8-most volatile components of Canadian CPI, we’re over 2%. Additionally, we’ll have the Bank of Canada and PM elections that will likely spark volatility in the Loonie.

While we are moving higher off the recent 1.2832 low, resistance is near. Short-Term resistance is setting up around the 38.2% Fibonacci Resistance around 1.31 from the decline that started at 1.3457. Because price broke below 1.2950, the confidence of the longer-term uptrend is quickly waning. Price action around resistance will be imperative to grabbing the feel for this pair during this data heavy week.

Two complementary markets to USD/CAD is the WTI / US Oil and the US Dollar. A higher US Dollar favors a higher USD/CAD while higher US Oil favors lower USD/CAD. To get a feel for the next hundred pip move on USDCAD, looking to these markets would be helpful. First, if US DOLLAR holds recent Bearish Key Day Resistance of 11,970 and US Oil can hold support of $43 before moving higher, then the breakdown from the 4-month rising wedge is likely just getting underway. On the other hand, if Oil is about to take another leg lower, (not the author’s view) we could be setting up for another test of the 11-year high at 1.3457. T.Y.

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

USD/CAD Technical Analysis: Long-Term Rising Wedge Breakdown

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

DISCLOSURES