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
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
GBP/USD
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
USD/JPY
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
Gold
Mixed
Oil - US Crude
Bullish
Bitcoin
Bearish
More View more
Real Time News
  • RT @YuanTalks: #China confirmed 889 new cases of #coronavirus, taking the total number of confirmed cases to 75,465 as of Thursday and the…
  • RT @Rover829: Reuters: CHINA REPORTS 889 NEW CONFIRMED CASES OF CORONAVIRUS ON MAINLAND ON FEB 20 VS 394 ON FEB 19 (this means more than ha…
  • RT @globaltimesnews: #Coronavirus halts most China-Europe freight trains until mid-February: industry insiders. https://t.co/L6gdcnQqIl htt…
  • RT @RANsquawk: Japanese Jibun Bank Flash PMIs (Feb): - Manufacturing 47.6 (Prev. 48.8) - Services 46.7 (Prev. 51.0) - Composite 47.0 (Prev.…
  • Bank of Japan's Governor Kuroda: Consumption drop isn't fault of sales tax alone. Storms, unseasonable weather also hitting spending. Capex, govt. policies supporting moderate expansion -BBG
  • South Korea confirms 52 further cases of the #coronavirus , bringing total to 156 -BBG
  • Bank of Japan Governor Haruhiko Kuroda - Cannot measure impact of #coronavirus yet - Virus likely to hit supply chains, tourism and exports - Will take appropriate measures as necessary but doesn't believe policy measures are needed at this time (BBG)
  • When your girlfriend says she’s visiting the Fed for work: https://t.co/sZjs9aW3eJ
  • The $GBP recoiled from chart resistance against the US Dollar, setting the stage for prices to resume a bearish trend reversal triggered mid-January. Get your market update from @IlyaSpivak here:https://t.co/lVpyZkIfJt https://t.co/zCGq8Kpoqy
  • The Australian Dollar outlook may shift further bearish after $AUDUSD took out key support. This followed a broadly pessimistic day in stocks as the haven-linked US Dollar soared #AUD #USD - https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/asia_am_briefing/2020/02/21/Australian-Dollar-Outlook-May-Deepen-Bearish-AUDUSD-Clears-Support.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/bIxUJhwp30
Canadian Dollar USD/CAD Price Trades Lower at a Risk of Reversal

Canadian Dollar USD/CAD Price Trades Lower at a Risk of Reversal

2019-10-28 10:30:00
Mahmoud Alkudsi, Market Analyst
Share:

Canadian Dollar Technical Forecast

Check our latest Q4 forecasts for free and learn what is likely to move the markets at this time of the year.

USD/CAD – Sellers in Charge

On Oct 18, USD/CAD broke below the neckline of double top pattern residing at 1.3134, then fell to multi- month low eyeing a test of 1.2920. Additionally, the weekly candlestick closed with nearly 0.5% loss, highlighting the bearish outlook of the market.

Last week, the Relative Strength Index (RSI) fell from 45 to 30 emphasizing the strength of downtrend momentum.

Just getting started? See our Beginners’ Guide for FX traders

USD/CAD DAILY PRICE CHART (DEC 18, 2017 – OCT 28, 2019) Zoomed Out

usdcad price daily chart 28-10-19 Zoomed out

USD/CAD DAILY PRICE CHART (July 15– Oct 28, 2019) Zoomed In

usdcad price daily chart 28-10-19 Zoomed in

From the daily chart, we notice on Friday, the pair declined to a lower trading zone 1.3008 – 1.3064. Today, the price opened with upward gap however, gap has been filled and sellers recovered control and pressed the pair to the downside.

Thus, a close below the high end of the zone could send USDCAD towards the low end of the zone. Further close below the low end could mark the beginning of a new leg lower towards 1.2950. Nevertheless, the weekly support areas underlined on the chart (zoomed in) should be kept in focus.

That said, any failure in closing below the high end would mean seller’s hesitation and may open the door for USDCAD to correct higher towards 1.3166. Although, the price should clear daily resistance levels marked on the chart specially, the aforementioned double top neckline. Needless to say, any close above it would negate the pattern.

Having trouble with your trading strategy? Here’s the #1 Mistake That Traders Make

USD/CAD four hour PRICE CHART (Sep 24 – Oct 28, 2019)

usdcad price four -hour chart 28-10-19

Looking at the four- hour chart, last week USD/CAD continued trading lower rebounding twice nearby 1.3052 creating a double bottom pattern. This suggests if the price breaks and remains above the neckline located at 1.3093 the pair could rally towards 1.3134. Although, the daily resistance underlined on the chart should be considered.

Having said that, USDCAD may resume bearish price action if breaks below 1.3048. In that scenario, the price could swing lower towards 1.3008. However, the weekly resistance underscored on the chart should be watched closely.

See the chart to know more about key levels to monitor in a further bullish/bearish move.

Written By: Mahmoud Alkudsi

Please feel free to contact me on Twitter: @Malkudsi

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

DISCLOSURES

News & Analysis at your fingertips.