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
GBP/USD
Bullish
USD/JPY
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
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
Oil - US Crude
Mixed
Bitcoin
Bearish
More View more
Real Time News
  • The latest UK General Election opinion polls continue to show the Conservative Party holding a strong lead over Labour and point to Boris Johnson winning a working majority in Parliament. Get your $GBPUSD market update from @nickcawley1 here: https://t.co/qF04EOUWkI https://t.co/LNl4bXbnpp
  • Recent polls have put Conservatives ahead of Labour and given a boost to $GBP. Get your #Brexit update from @ZabelinDimitri here: https://t.co/l2n53C0cYY https://t.co/oTWfXkaDDt
  • What are the truths and myths of #forex trading? Find out from @DailyFX analysts here: https://t.co/uF75VPzstr #FOMOintrading https://t.co/xeromAGqqx
  • Macro data from around the world have long attested to the urgent need for a trade settlement between the US and China. Increasingly the corporate numbers are saying the same. Get your market update from @DavidCottleFX here:https://t.co/Qon7QUO80c https://t.co/rCOG78QQ2M
  • #Gold prices may fall while the US Dollar gains even as economic policies championed by the Trump administration invite inflation. Get your market update from @IlyaSpivak here: https://t.co/4lHhHsby56 $XAUUSD https://t.co/JmZxckVHdS
  • Cable (GBP/USD) remains just off its seven-month high print around 1.3165 as traders start to move to the side lines ahead of next Thursday’s General Election vote. Get your $GBPUSD market update from @nickcawley1 here: https://t.co/CpCh13J9ZH #Brexit https://t.co/PIh6WUqbsK
  • (Weekly Technical Outlook) GBP/USD, EUR/GBP, GBP/JPY, GBP/CAD Outlook as UK Election Looms $GBPUSD $EURGBP $GBPJPY #UKelection2019 - https://www.dailyfx.com/forex/technical/article/fx_technical_weekly/2019/12/07/GBPUSD-EURGBP-GBPJPY-GBPCAD-Outlook-as-UK-Election-Looms.html?CHID=9&QPID=917702 https://t.co/iuILHYczJ7
  • Why do you require consistency in trading and why does it matter? Find out: https://t.co/WlEFlluGfZ #tradingstyle https://t.co/TkMtJQKatx
  • By issuing debt denominated in $USD, China is making a long-term bet that it will be cheaper to pay back its loans over time in the US Dollar; it believes the value of the US Dollar will fall. Get your market update from @CVecchioFX here:https://t.co/5GO9UrvO4y https://t.co/xV9urXXf48
  • What are some risk trading management techniques? Find out: https://t.co/RShdlDz9RA #tradingstyle https://t.co/M3ASPIHAep
USD/CAD Price Outlook – Looking for a break below 1.3376

USD/CAD Price Outlook – Looking for a break below 1.3376

2019-05-10 15:00:00
Mahmoud Alkudsi, Market Analyst
Share:

USD/CAD Technical Analysis

  • Important Data for CAD Due Next Week, Including CPI.
  • USD/CAD Correcting Its Upward Trend Hinting a Movement Towards the Downside

See the Q2 USD and CAD forecastand check what is likely to drive price action through mid-year.

See the DailyFX Economic Calendar for a comprehensive look at all next week’s data releases.

Having trouble with your trading strategy?Here’s the #1 mistake that traders make

USD/CAD Daily Price Chart (Nov 2018 – May 10, 2019)

USD/CAD prices daily chart

From Bullish to Bearish

In the second half of April, USD/CAD had been trading to the upside from the higher-high created on April 24 at 1.3521 (highest level in nearly 4 months), to the May 1 lower-low at 1.3377. On May 6^th^, the pair corrected its movement and carved out a lower-high at 1.3494 before closing below 1.3457. In turn, this saw the pair decline towards the levels highlighted in last week's article: USD/CAD Price Outlook - Looking for a break below 1.3410 ?

Wednesday's price action saw USD/CAD close above 1.3457 before rallying towards 1.3516 the following day. The pair failed at 1.3505 which resulted in a bearish Doji pattern. Alongside this development it is worth noting that the Relative Strength Indicator (RSI) has stagnated since the start of this week between (53.5 - 57.5).

To Sum up: A close below 1.3410 today would be a negative development suggesting a push towards 1.3376. If support in the vicinity of 1.3384-76 is broken a stronger bearish outlook could push USD/CAD towards the zone between 1.3337 and the 38.2 % Fibonacci retracement at 1.3322; contingent on first clearing additional support levels at 1.3365, 1.3354, 13342.

What if USD/CAD closed above 1.3410 this week?

This would keep the price within the same trading range, suggesting the pair might push towards the higher side of the range at 1.3457, however; resistance levels at 1.3425 and 1.3444 are worth monitoring. Meanwhile, any close above 1.3457 would take price to the high end of the trading range at 1.3516. However, the resistance levels at 1.3494 and 1.3506 need to be watched along the way.

USD/CAD 2 Hours Price Chart (May10, 2019)

USD/CAD prices 2H Chart

Bearish Development

USD/CAD has fallen 0.7% throughout the session due to the positive Canadian data release, breaking below 1.3422 where the rising trend-line originated off of the April 22 Low. If the price remains below it could push towards the zone of 1.3337 - 1.3332, taking into consideration the support levels mentioned above.

Meanwhile, the Relative Strength Indicator (RSI) has fallen sharply from 47.7 to 31 today, emphasizing the strength of bearish momentum as RSI edges towards a an oversold reading.

Written By: Mahmoud Alkudsi

Please feel free to contact me on Twitter: @Malkudsi

Just getting started?See our beginners’ guide for FX traders

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

DISCLOSURES

News & Analysis at your fingertips.