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
More View more
Real Time News
  • 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/Nx6AHxZksK
  • Markets Week Ahead: Euro, Dollar, Gold, S&P 500, Earnings, Inflation Check out @RichDvorakFX's latest market recap and preview plus all the weekly forecasts from the @DailyFXTeam at the link below! Link to Analysis - https://www.dailyfx.com/forex/fundamental/forecast/weekly/title/2021/07/25/markets-week-ahead-euro-dollar-gold-sp500-fed-earnings-inflation.html $EURUSD $SPX #Trading
  • Looking for a new way to trade reversals? One of the most used reversal candle patterns is known as the Harami. Like most candlestick formation patterns, the Harami tells a story about sentiment in the market. Get better with trading reversals here: https://t.co/rfwUWJfbz9 https://t.co/xKkBwu951j
  • The non-farm payroll (NFP) figure is a key economic indicator for the United States economy. It is also referred to as the monthly market mover. Find out why it has been given this nickname here: https://t.co/yOUVEEqhc5 https://t.co/MYWlQphqtb
  • Knowing how to accurately value a stock enables traders to identify and take advantage of opportunities in the stock market. Find out the difference between a stock's market and intrinsic value, and the importance of the two here: https://t.co/QszmdZFxlk https://t.co/paOy1oQmn3
  • US indices have a packed week ahead with earnings from the major technology names, US GDP data due and an FOMC rate decision. With so much on the docket the potential for volatility is heightened. Get your stock market forecast from @PeterHanksFX here: https://t.co/CH4WoStHvu
  • GDP (Gross Domestic Product) economic data is deemed highly significant in the forex market. GDP figures are used as an indicator by fundamentalists to gauge the overall health and potential growth of a country. Learn use GDP data to your advantage here: https://t.co/Yl9vM7kO6a https://t.co/otJwnuR7qe
  • The Federal Reserve System (the Fed) was founded in 1913 by the United States Congress. The Fed’s actions and policies have a major impact on currency value, affecting many trades involving the US Dollar. Learn more about the Fed here: https://t.co/ADSC4sIHrP https://t.co/s4lZWdJoXV
  • The US Dollar Index traded higher last week, sustaining its broader uptrend. Conflicting technical signals urge caution, but the directional bias remains skewed to the upside. Get your weekly USD technical forecast from @FxWestwater here: https://t.co/jcwhcsUBEN https://t.co/tKrlrRZlZn
  • Technical analysis of charts aims to identify patterns and market trends by utilizing differing forms of technical chart types and other chart functions. Learn about the top three technical analysis tools here: https://t.co/KDjIjLdTSk https://t.co/MGy9OTXpUI
Canadian Dollar Price Outlook – USD/CAD Looking to Extend Rally

Canadian Dollar Price Outlook – USD/CAD Looking to Extend Rally

Paul Robinson, Strategist

USD/CAD Technical Highlights:

  • USD/CAD is in breakout territory
  • A little more strength can get it into open space

The theme this week has been widespread intervention to combat economic weakness as a result of the coronavirus. The Fed and BoC cut rates by 50-bps each. There was little net effect from the two actions outside of some very short-term USD/CAD volatility.

Looking at the weekly chart, the US Dollar is well positioned to rally against the Canadian Dollar. With price having taken out the 2016 trend-line (neatly tied to a parallel running on the underside of the past four years), and also breaking above the September high at 13382, the upside appears to have been softened up for USD/CAD to keep extending.

This is the macro outlook, one which could eventually take price back to the highs in 2016 at 14899, but the shorter-term may still be a bit sloppy until there is some more separation from the breakout point. The preferred approach on this end is to look for solid-looking consolidation patterns (flags, triangles, rectangles, etc.), along with shallow pullbacks in a sequence of higher-highs and higher-lows (& ideally back to support levels).

As long as price stays above the 2016 trend-line the bullish outlook will remain intact. Resistance clocks in at 13565 (May ‘19 high) and then 13664 (Dec ’18 high). There is a slope running over from May of 2017 that could join forces with the May high to strengthen the 13565-area as resistance, but not a hurdle seen at this time capable of denting the more significant breakout we are seeing.

USD/CAD Daily Chart (sloppy but could clean up)

USD/CAD daily chart

USD/CAD Chart by TradingView

USD/CAD Weekly Chart (in big-picture breakout area)

USD/CAD weekly chart

USD/CAD Chart by TradingView

Resources for Forex & CFD Traders

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