Skip to content
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. See our updated Privacy Policy here.

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
Oil - US Crude
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
More View more
USD/CAD Technical Analysis: Entering Into A Pivotal Zone

USD/CAD Technical Analysis: Entering Into A Pivotal Zone

Tyler Yell, CMT, Currency Strategist

Talking Points:

USD/CAD broke below 1.3300 on Wednesday morning, which puts the pair on a downward trend the start of 2017. USD strength continues to be a broader theme that many are still watching, but we have recently noted that DXY is found resistance in the medium-term while RSI(5) is showing bearish divergence that could allow other currencies like the Canadian dollar to gain ground.

Economic data for the Canadian economy is rather light per the DailyFX Economic Calendar. One of the key themes that have developed over past weeks for the Canadian dollar is a supportive Bank of Canada that looks to err on the side of hawkishness that could continue to support CAD and put further pressure on USD/CAD.

Watching the chart below, we are starting to face major moving averages worth noting. The 100-day moving average sits at 1.3256 followed by the 200-day moving average at 1.3094. While the entire move higher from the May 2016 low has been choppy, traders who bought deep dips in USD/CAD have been rewarded, albeit likely bloodied a bit too.

In addition to the major moving averages, USD/CAD is currently trading near the base of the daily Ichimoku Cloud that has acted as flexible support in the move higher over the prior months. One strong technical point worth keeping an eye on is the trend line drawn from the higher lows in the base of the channel created with the Modified Schiff pitchfork near the 78.6% retracement of the December range near 1.3200.

The market has remained above this trajectory in the entire move higher that has corrected the sharp downturn in the first half of 2016. A break below this trend line may be an explicit argument that we are about to see either surprising USD weakness, little-expected CAD strength or maybe a mixture of both in Q1 2017.

What Did The Analysts Learn After Trading Of All 2016? Click Here To Find Out

D1 USD/USD Chart: Testing Multiple Forms of Support

Chart Created by Tyler Yell, CMT

Key Short-Term Levels as of Wednesday, January 4, 2017

For those interested in shorter-term levels of focus than the ones above, these levels signal important potential pivot levels over the next 48-hours.

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