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
GBP/USD
Bullish
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
Gold
Bullish
Oil - US Crude
Bearish
Bitcoin
Bearish
More View more
Real Time News
  • Japan’s All Industry Activity Index (MoM) (AUG) Actual: 0.0% Est: 0.1% Previous: 0.2% #JPY
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.04%, while traders in Germany 30 are at opposite extremes with 78.78%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/cCfWKn4CzA
  • (ASEAN Fundamental Forecast) US Dollar Outlook: MYR, SGD May Fall on CPI. Rupiah to Drop on Cut? #USD $USDMYR $USDSGD $USDIDR - https://www.dailyfx.com/forex/fundamental/article/special_report/2019/10/21/US-Dollar-Outlook-MYR-SGD-May-Fall-on-CPI-Rupiah-to-Drop-on-Cut.html?CHID=9&QPID=917702 https://t.co/3u9AfXqbeN
  • Forex Update: As of 04:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.22% 🇦🇺AUD: 0.10% 🇨🇦CAD: -0.03% 🇯🇵JPY: -0.10% 🇨🇭CHF: -0.14% 🇬🇧GBP: -0.43% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/ZjiVEE5Iuw
  • Heads up: Japan’s All Industry Activity Index (MoM) (AUG) is due at 4:30 GMT (15 min) Est: 0.1% Previous: 0.2% #JPY
  • Heads Up:🇯🇵 JPY All Industry Activity Index (MoM) (AUG) due at 04:30 GMT (15min), Actual: N/A Expected: 0.1% Previous: 0.2% https://www.dailyfx.com/economic-calendar#2019-10-21
  • Indices Update: As of 04:00, these are your best and worst performers based on the London trading schedule: US 500: 0.36% Wall Street: 0.31% France 40: 0.26% Germany 30: 0.22% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/2lBu42B9fy
  • Over the past 30 days, #Ghana Cedi, #Egyptian Pound and #Kenyan Shilling have been the best performing African currencies vs #USD with 0.85%, 0.67% and 0.17% spot returns respectively
  • Have you joined @DailyFX @facebook group yet? Discuss your #forex strategies and brush up on your skills with us here: https://t.co/jtY1G7g8yx https://t.co/m2sMVRiVef
  • LIVE NOW: Join Currency Analyst @ZabelinDimitri as he previews the upcoming week’s main political themes and discusses their impact on the financial markets. Register here: https://www.dailyfx.com/webinars/146770987?utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
USD/CAD Technical Analysis: Clean Corrective Channel Above Key Support

USD/CAD Technical Analysis: Clean Corrective Channel Above Key Support

2016-11-21 17:55:00
Tyler Yell, CMT, Currency Strategist
Share:

Talking Points:

  • USD/CAD Technical Strategy: Upside Remains Favored Despite Bounce Off 50% Retracement
  • Oil Premium Brings USD/CAD to 1-Week Lows In Anticipation of OPEC Meeting In Vienna
  • Upside Option Premium Backs Off After Strong USD Rally

Quick Fundamental Take:

The Canadian Dollar got a boost Monday morning as Oil Producers within OPEC showed unison heading into the Vienna meeting later this month, which propelled the Oil to the highest levels this month. Most of the short-term positive data like a rate hike by the Federal Reserve is baked into the price as Bloomberg calculates the probability of a hike to 98% for the December FOMC meeting.

Access Our Free Q4 Dollar Outlook As The US Dollar Faces An Unorthodox Presidential Election

The Bank of Canada is not expected to act anytime soon, and we’ll continue to keep an eye on inflation expectations and the sovereign bond market to see how investor’s anticipate the implications of President-Trumps trade plans.

Having a Hard Time Trading USD/CAD? This May Be Why

Late November tends to provide thin trading, but over the past few years, USD/CAD has accelerated higher over December & January. We’ll keep a watch on this trend to continue as the charts favor further upside above 1.3264.

Technical Focus:

D1 USDCAD: Clean Corrective Channel Within Broader Uptrend

USD/CAD Technical Analysis: Clean Corrective Channel Above Key Support

Chart Created by Tyler Yell, CMT

The Canadian Dollar has gained on Monday morning off of significant support from last week against the US Dollar. Namely, the 50% Fibonacci Retracement of the January-May range at 1.3575. The weakness displayed in the Candian Dollar has aligned with the trend shift that we’ve been focusing on since the price broke above the Ichimoku Cloud and was followed by the momentum line. We continued to favor upside based on both the charts and fundamental story developing this week. Wednesday, U.S. Data comes in the form of Durable Goods, which are not expected to affect the priced in rate-hike for December one-way or another.

You can Learn To Trade With Ichimoku Cloud At My Free Weekly Webinar By Registering Here

As the price remains above the Ichimoku Cloud, the path of least resistance remains higher, and we could be paving the way for an aggressive rise as we move from a leading diagonal to an impulsive wave ‘iii’ of ‘C’ in Elliott Wave terms. The leading diagonal view is encouraged by the recent break above the pattern high at 1.3313, and the three-wave move toward a 50% retracement of the diagonal down to 1.3005.

The recent turnaround off of 1.32647 provides a base that we can look to as a foundation for advancing the uptrend. Monday’s low around 1.3387 was fought by bulls in the thin markets in a similar fashion that we saw on the Nov. 17/16 session lows.

As long as the price stays above this level, we would expect upside pressure to grow, and we’ll look to confirm the upside pressure on a break above the bearish channel drawn off the 1.3589 high on November 14. The 1.32647 level is highlighted on the chart, and price staying above this level will cause us to treat last week’s turnaround as a counter-trend move that is anticipated to reverse higher favoring further USD strength.

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

The current upside target is the November 14 high near the 50% retracement of the January-May range at 1.3589. If 1.3589 breaks, we’ll be on the watch of the 61.8% retracement of the same range at 1.3838.

A few of the support levels that would need to break to change the tune from Bullish to Neutral is 1.3312, the 38.2% Fibonacci Retracement of the Jan-May range followed by Today’s low of 1.3264 that was mentioned above.

Key Short-Term Levels as of Monday, November 21, 2016

USD/CAD Technical Analysis: Clean Corrective Channel Above Key Support

T.Y.

Interested in learning more about markets and trading strategies? Join Tyler and other DailyFX analysts for FREE every trading by registering HERE!

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

DISCLOSURES

News & Analysis at your fingertips.