Skip to Content
News & Analysis at your fingertips.
Free Trading Guides
Please try again

Live Webinar Events


Economic Calendar Events


Notify me about

Live Webinar Events
Economic Calendar Events






More View More
USD/CAD Technical Analysis: Key Breakdown Keeps Focus Lower

USD/CAD Technical Analysis: Key Breakdown Keeps Focus Lower

Tyler Yell, CMT, Currency Strategist


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

Talking Points:

  • USD/CAD Technical Strategy: Looking To Sell Rallies
  • 55-DMA And Prior Channel Support May Provide Near-Term Resistance
  • Only A Daily Close > 1.32664 Would Invalidate Bias Lower

USD/CAD will likely be a show stealer in the G10 FX space on November 6th. The October payroll reports out of the United States,and Canada is nearly guaranteed to bring volatility. Technically speaking, USD/CAD has been consolidating between 1.3100/1.3200 and a break and close on the other side of either level could be the first indication of a strong move for the rest of November.

Like many other currency pairs, USD/CAD has been subject to the red-hot US DOLLAR. Traders small and large have been loading up on the US dollar in anticipation of a positive U.S. payroll number on Friday that could cement a rate hike on December 16th, by the Federal Reserve. However, regardless of the fundamental news, the technical level of 1.32664 the closing high of October will appropriately be in focus. A weekly close above 1.32664 could make the argument that multiyear highs are once again on the horizon. Until such a break happens, the recent breakdown towards 1.2831, which seemingly found support from the March 18th high when the Fed tempered optimism for an imminent rate hike.

Reliable short-term resistance and overall USD/CAD direction havebeen found with the 55-day moving average. Currently resting at 1.3173, the 55-dma can act as a direction filter for trading USD/CAD. Going into NFP Friday, price action and close in regards to the 55-DMA and October closing high of 1.32664 will be the tell for USD/CAD. If price remains below both levels, the downside will remain favored toward an eventual retest of 1.28311.

To See What are the Traits of Successful Traders? Click Here

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