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
Subscribe
Please try again
EUR/USD
Bearish
Oil - US Crude
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
Wall Street
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
Gold
Bearish
GBP/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
USD/JPY
Bearish
More View more
Real Time News
  • Ever wonder if there are other chart types that can be sued for technical analysis? HLOC charts are discussed in the following article as well as their pros and cons. Learn more here: https://t.co/qV3c7a4YR3 https://t.co/32hYzqhuZ9
  • The Australian Dollar sits on the crossroads of Treasury yields, the S&P 500 and US fiscal stimulus expectations. Will $AUDUSD gains slow? Chinese Q4 GDP and Australian jobs data are due. Get your market update from @ddubrovskyFX here: https://t.co/BsYmmWFYOH https://t.co/HhLqb2iVgk
  • #Gold prices have come under significant pressure to kick-off 2021. However, the formation of bullish technical patterns across multiple timeframes suggests that a rebound higher may be at hand. Get your market update from @DanielGMoss here: https://t.co/Dpf8N4Fh0T https://t.co/pnZpnM9yT5
  • The ISM manufacturing index plays an important role in forex trading, with ISM data influencing currency prices globally. Learn about the importance of the ISM manufacturing index here: https://t.co/Xr3xtoFpZy https://t.co/yCtLFemdNc
  • GBP underpinned as BoE downplays negative rates, alongside vaccine rollout. Get your market update from @JMcQueenFX here: https://t.co/n6V6uw0XV5 https://t.co/Toq2fxSdBE
  • Technical analysis of charts aims to identify patterns and market trends by utilizing differing forms of technical chart types and other chart functions. Learn about the top three technical analysis tools here: https://t.co/KDjIjLdTSk https://t.co/5VzSt5Ak7R
  • The Federal Reserve System (the Fed) was founded in 1913 by the United States Congress. The Fed’s actions and policies have a major impact on currency value, affecting many trades involving the US Dollar. Learn more about the Fed here: https://t.co/ADSC4sIHrP https://t.co/Jkv0onMyZw
  • Why is JPY called a safe haven? What are some factors in its favor this quarter? Get your free forecast here: https://t.co/mzeJ5x73N3 #DailyFXGuides https://t.co/S4bwgGZxmw
  • Traders utilize varying time frames to speculate in the forex market. The two most common are long- and short-term-time frames which transmits through to trend and trigger charts. Learn more about time-frame analysis here: https://t.co/9S5tXIs3SX https://t.co/T3W8CIg5iy
  • Forex sentiment analysis can be a useful tool to help traders understand and act on price behavior. Learn how to get the most out of understanding trader sentiment here: https://t.co/rJznrXkcYz https://t.co/FPgZ5gkgrM
USD/CAD Technical Analysis: Strong Demand Seen Through Pivotal 1.4000

USD/CAD Technical Analysis: Strong Demand Seen Through Pivotal 1.4000

2016-01-05 18:00:00
Tyler Yell, CMT, Currency Strategist

Interested In Learning the Traits of FXCM’s Successful Traders? If So, Click Here

Talking Points:

-USD/CAD Technical Strategy: Buy the Dip Above 1.3812

-USD/CAD continues to hold above upper bound of long-term bull channel

-1.3811 January 4th Low to Act as Swing Support

USDCAD is a wonder to behold. Since May of 2015, there has been a few retracement into the key Fibonacci zone of 38.2-61.8% in June & October of the prior impulse, but aside from those short-term counter-trend moves, USDCAD seems to be taking the elevator higher, forget the stairs. Looking across the board, it seems like USDCAD does not intend to slow down whether looking at momentum via RSI, Crowd Sentiment Continues to Favor USD/CAD Gains, or trend following indicators like moving averages. On the chart below, you will also notice a line that is drawn from a bullish channel of the 2007-2011 low to the 2009 high on the weekly chart. The hold above that line is additionally bullish.

Given the strength of the current move, which has pushed USDCAD to the highest level since 2003 at 1.4019, it is more important to discuss support than resistance. By looking at the support levels, we can take ourselves out of the 81% of retail traders fighting this trend (they likely haven’t been reading this articles anyway), and focus on the 19% who are following this move higher along with other USD upside moves like USDSEK higher & NZDUSD lower. For now, the most important support is the January/ YTD low of 1.3811 that was also the December 28 low. Because USDCAD has been in a 1.38/1.40 range for three weeks, we can look to that sideways move as a correction suggesting the trend is resuming impulsively higher again. The trend resumption was evidenced by the very aggressive move above 1.4000 that touched 1.4019 on the highest hourly interbank volume since the days following FOMC’s rate hike.

While the trend is strong and worth following above 1.3811, there are specific targets to the upside starting with 1.4100. This target aligns with the Weekly R1 Pivot and is 61.8% of the initial move off the mid-May low projected higher from 1.3811. Above 1.4100, traders can look to 1.4275/43, which is the top of the channel drawn from the late August high and is 100% of the initial move off the mid-May low projected higher from 1.3811. Another sign of the strength of the move is that RSI (14) broke above 70 in a similar fashion to USD-CAD in July as it was in the midst of overtaking 1.3000 from 1.1900 a few months ago. If nothing else, RSI helps us to see that the trend is not worth fighting; only following for now.

To see how FXCM traders are positioned, click here.

USD/CAD Technical Analysis: Strong Demand Seen Through Pivotal 1.4000

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

DISCLOSURES