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
Wall Street
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
More View more
Real Time News
  • Heads Up:🇪🇸 Balance of Trade (JUL) due at 08:00 GMT (15min) Previous: €-0.98B https://www.dailyfx.com/economic-calendar#2021-09-20
  • Fitch on China Property Developers - View will turn negative if sales in H2 21 fall below that achieved in H2 19 and/or if sharp fall follows through to H1 22 - Government policies in sector remain tight and show no sign of imminent loosening
  • Slippage can be a common occurrence in forex trading but is often misunderstood. Understanding how forex slippage occurs can enable a trader to minimize negative slippage, while potentially maximizing positive slippage. Learn about FX slippage here: https://t.co/Blrl0uF2Ct https://t.co/B0Y3XJhkRS
  • Key levels in forex tend to draw attention to traders in the market. These are psychological prices which tie into the human psyche and way of thinking. Learn about psychological levels here: https://t.co/8A1QhwMVKo https://t.co/1xhewkdV21
  • (USD Weekly Tech) US Dollar Dominant Uptrend Back In Focus: EUR/USD, USD/JPY, NZD/USD, USD/CHF https://www.dailyfx.com/forex/technical/article/special_report/2021/09/20/US-Dollar-Dominant-Uptrend-Back-In-Focus-EURUSD-USDJPY-NZDUSD-USDCHF.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/IpwzBGCi7P
  • What is your forex trading style? Take the quiz and find out: https://t.co/YY3ePTpzSI https://t.co/qv8keXFzHZ
  • Join @IlyaSpivak at 22:00 EST/2:00 GMT for his cross-market weekly outlook webinar. Register here: https://t.co/MKGHc9ae64 https://t.co/JMlT0Wn3DK
  • Did you know a Doji candlestick signals market indecision and the potential for a change in direction. What are the top five types of Doji candlesticks? Find out https://t.co/c51s3IBcEu https://t.co/sbejkd7XT5
  • *Reminder: Weekly Strategy Webinar Monday morning at 8:30am ET - https://t.co/lxd5fZnn4H Mid-Week Market Update on Wednesday at 9:30am ET - https://t.co/8SFBJxNZrA
  • Are you new to trading? Technical analysis of charts aims to identify patterns and market trends by utilising different forms of technical chart types and other chart functions. Get a refresher on technical analysis or begin building your knowledge here: https://t.co/qV3c7a4YR3 https://t.co/CJR61cljOe
Canadian Dollar Price Outlook: USDCAD Reacts to Crude Oil Spike

Canadian Dollar Price Outlook: USDCAD Reacts to Crude Oil Spike

Paul Robinson, Strategist

Canadian Dollar Technical Highlights:

Check out the intermediate-term fundamental and technical outlook for major markets and currencies in the DailyFX Quarterly Forecasts.

Canadian Dollar jumps on crude oil spike

Crude oil opened the week with a massive, double-digit percentage gap higher following drone attacks on a Saudi oil facility. With crude oil ripping, the Canadian Dollar is getting a bit of a lift. From a technical standpoint, the gap has done little to change the chart in USDCAD.

The near-term picture remains just as uncertain as it was on Friday. Getting a handle on USDCAD has been challenging lately with trading mostly dominated by choppy price action and limited follow-through when it does get into gear a bit.

Looking longer-term, though, a major breakout could be nearing as long-term trend-lines converge on one another. On the underside there is the 2012 trend-line which was tested in July and very nearly again last week. It has a good number of connecting points, making it a sturdy line for USDCAD to lean on as support.

Crossing down from the 2016 spike-high is another trend-line making its way over peaks in December and May. The convergence of the two lines is very near, which means the risk of seeing a sustained breakout has significantly increased.

The thinking on this end for a while has been that the grind higher since the bottom in 2017 could lead to another downside move like the periods of selling in 2016 and 2017. But as long as the 2012 trend-line holds this view is in the neutral zone. A break below the trend-line and July low of 13015 will be needed to turn the outlook firmly negative.

On the topside, a breakout above the 2016 trend-line and December high at 13661 is seen as turning the picture positive. Otherwise only a sneak above the 2016 trend-line without climbing above the December high could lead to a further contraction in price since May 2017 and a triangle formation that will need a little more time to develop.

From a tactical standpoint, traders aren’t left with a lot to work with in the very near-term, but a longer-term breakout could soon bring a sizable move and a decisive trading direction. The downside is seen as having the cleanest path, but again waiting for confirmation may best serve traders.

USDCAD Weekly Chart (Convergence to lead to big move)

Canadian Dollar Price Outlook: USDCAD Reacts to Crude Oil Spike

USDCAD Charts by Tradingview

USDCAD Daily Chart (Short-term uncertain)

Canadian Dollar Price Outlook: USDCAD Reacts to Crude Oil Spike

Forex & CFD Trader Resources

Whether you are a new or experienced trader, we have several resources available to help you; indicator for tracking trader sentiment, quarterly trading forecasts, analytical and educational webinars held daily, trading guides to help you improve trading performance, and one specifically for those who are new to forex.

---Written by Paul Robinson, Market Analyst

You can follow Paul on Twitter at @PaulRobinsonFX

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

DISCLOSURES