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
  • 🇫🇷 Business Confidence (SEP) Actual: 106 Expected: 109 Previous: 110 https://www.dailyfx.com/economic-calendar#2021-09-23
  • Heads Up:🇪🇸 GDP Growth Rate QoQ Final (Q2) due at 07:00 GMT (15min) Expected: 2.8% Previous: -0.4% https://www.dailyfx.com/economic-calendar#2021-09-23
  • Heads Up:🇪🇸 GDP Growth Rate YoY Final (Q2) due at 07:00 GMT (15min) Expected: 19.8% Previous: -4.2% https://www.dailyfx.com/economic-calendar#2021-09-23
  • It’s important for traders to be familiar with FX spreads as they are the primary cost of trading currencies. Understand a pair's spread here: https://t.co/zEEUHZBx7g https://t.co/JzYaIqZgAE
  • Heads Up:🇫🇷 Business Confidence (SEP) due at 06:45 GMT (15min) Expected: 109 Previous: 110 https://www.dailyfx.com/economic-calendar#2021-09-23
  • 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/Lxp7fJaM8Q
  • (ASEAN Tech) US Dollar Climbs Post FOMC. USD/SGD, USD/THB, USD/PHP, USD/IDR in Focus #USD $USDSGD $USDTHB $USDPHP $USDIDR #ASEAN https://www.dailyfx.com/forex/technical/article/special_report/2021/09/23/US-Dollar-Climbs-Post-FOMC-USDSGD-USDTHB-USDPHP-USDIDR-in-Focus.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/xcp3hdGaXe
  • 🇳🇱 GDP Growth Rate QoQ Final (Q2) Actual: 3.8% Expected: 3.1% Previous: -0.8% https://www.dailyfx.com/economic-calendar#2021-09-23
  • 🇳🇱 GDP Growth Rate YoY Final (Q2) Actual: 10.4% Expected: 9.7% Previous: -2.4% https://www.dailyfx.com/economic-calendar#2021-09-23
  • What is your forex trading style? Take the quiz and find out: https://t.co/YY3ePTpzSI https://t.co/9xP8YlxWSv
USD/CAD Bulls at A Cross Road, Canadian Dollar vs US Dollar Price Outlook

USD/CAD Bulls at A Cross Road, Canadian Dollar vs US Dollar Price Outlook

Mahmoud Alkudsi, Analyst

USD/CAD Price Technical Forecast

  • At its highest level since May 2017
  • Bulls need to consider these levels to keep controlling the price action

USD/CAD- Soars to Multi-Month High

Last week, USD/CAD fell to 1.3315 then recovered all its losses and closed the weekly candlestick with a bullish Doji pattern, highlighting that bulls were not done. This week, the price rallied to 1.3763- its highest level in over two and half years.

Alongside that, the Relative Strength Index (RSI) crossed above 70 and remained in overbought territory, emphasizing the strength of uptrend momentum.

USD/CAD DAILY PRICE CHART (DEC 1, 2018 – Mar 10, 2020) Zoomed Out

USDCAD daily price chart 10-03-20 Zoomed out

USD/CAD DAILY PRICE CHART (DEC 12 – Mar 10, 2020) Zoomed In

USDCAD daily price chart 10-03-20 Zoomed in

From the daily chart, we noticed that this week USD/CAD has opened with a gap to the upside and moved to a higher trading zone 1.3593 – 1.3724. The price broke above the high end of the zone then retreated after, as some bulls seemed to cut back.

Therefore, the pair could be on its way for a test of the low end of the zone. A close below that level may lead more bulls to exit the market. As such, USDCAD could fall towards 1.3547. Further close below 1.3511 opens the door for the pair to decline towards 1.3291. Yet, the daily support level and zone/s marked on the chart (zoomed in) should be considered.

On the other hand, any close above the high end of the zone could lead to more bullishness towards 1.3950. That said, the weekly resistance zone marked on the chart should stay in focus, as some traders might exit/join the market around these points.

USD/CAD four hour PRICE CHART (FEB 27 – Mar 10, 2020)

USD/CAD Bulls at A Cross Road, Canadian Dollar vs US Dollar Price Outlook

Looking at the four- hour chart, we notice that USD/CAD reversed lower as created yesterday a lower low at 1.3517 and today a lower high at 1.3709.

Hence, a break below 1.3586 could send USDCAD even lower towards 1.3547. Although, the daily support level underlined o the chart should be monitored. On the flip-side, a break above 1.3735 might cause a rally towards 1.3765. Nevertheless, the daily resistance level underscored on the chart should be watched closely.

See the chart to find out 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