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
Oil - US Crude
Bearish
Wall Street
Bullish
Gold
Bullish
GBP/USD
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
USD/JPY
Bearish
More View more
Breaking news

Chinese PMI Data Beats Estimates. Manufacturing 52.0, Est 44.8, Non-Manufacturing: 52.3, Est 42.0

Real Time News
  • Foreign exchange – or “#forex” – markets often pay close attention to politics and central bank policy. We offer a model for traders to gauge their impact on exchange rates. Get your market insight from @ZabelinDimitri and @CVecchioFX here: https://t.co/FbXc1Awu6a https://t.co/IZlYdXrnLm
  • Commodities Update: As of 02:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 6.93% Silver: 0.73% Gold: -0.41% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/wMbZni4GxM
  • "However, this downgrade may be the canary in the coalmine for other emerging market economies that may spread to their OECD counterparts" https://www.dailyfx.com/forex/fundamental/article/special_report/2020/03/30/Euro-May-Rise-on-ESM-Crude-Oil-Selloff-Deepens-on-OPEC-Price-War.html
  • You can't see it, but I have a seriously dubious look on my face https://t.co/vOEfdaHwyg
  • Forex Update: As of 02:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.18% 🇦🇺AUD: -0.13% 🇨🇦CAD: -0.22% 🇪🇺EUR: -0.27% 🇬🇧GBP: -0.69% 🇯🇵JPY: -0.70% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/XyAyUgqavm
  • LIVE NOW! APAC Head Strategist @IlyaSpivak discusses the technical and fundamental $AUDUSD outlook for the week ahead here - https://www.dailyfx.com/webinars/378612179?CHID=9&QPID=917720&utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 95.82%, while traders in US 500 are at opposite extremes with 72.90%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/el9cpkaZNX
  • The $USD may rise versus the Singapore Dollar, Indonesian Rupiah and Malaysian Ringgit if capital flows out of #ASEAN countries as key U.S. data risks a selloff in equities. Get your market update from @ddubrovskyFX here: https://t.co/JWIRn6MLrK https://t.co/W3zdKcvSCJ
  • LIVE IN 30 MIN: APAC Head Strategist @IlyaSpivak discusses the technical and fundamental $AUDUSD outlook for the week ahead here - https://www.dailyfx.com/webinars/378612179?CHID=9&QPID=917720&utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
  • RT @DanielGMoss: Spontaneous spike prior to Chinese #PMI releases Strong results compared to previous record lows Non-manufacturing: 52.…
Canadian Dollar Price Outlook – USD/CAD Rally Nearing End or Just Getting Started?

Canadian Dollar Price Outlook – USD/CAD Rally Nearing End or Just Getting Started?

2020-03-19 12:00:00
Paul Robinson, Strategist
Share:

USD/CAD Technical Highlights:

  • USD/CAD trading around the 2016 peak
  • Pullback risk heighted in near-term
  • Longer-term, 16000+ looks to be in the cards

USD/CAD is seeing strong tailwinds from oil cratering and dollar demand, pushing the pair to the initially targeted 2016 high following the breakaway gap last Sunday. But now that it is there, it may need a breather.

The thinking is that it won’t necessarily make for the best short, as the bigger picture trend is pointed higher, but nevertheless a retracement trade could be in the works. A period of digestion would do the recent surge some good for setting up for another long trade just a little ways down the road.

The peak to cross is 14689, a level that USD/CAD was just shy of reaching in overnight trade before weakening up a bit. A convincing crossing over the 2016 high sets up for a move towards the 2002 high at 16185.

This might sound like a big target, but not really when looking at the 3-year base it has built and the run during the 2014/16 period prior to that base. Furthermore, given the historical moves we have seen markets make in reaction to the coronavirus, the 2002 high could very well be a conservative view, and at some point a revision in the target may be in order.

For now, in wait-and-see mode as things digest a bit here. Current longs from good prices may want to stick around and see if a breakout can develop. Very short-term-minded traders may look to play a countertrend trade, but will want to stay nimble. Would-be longs may be best served waiting for a good risk/reward entry before becoming too aggressive about bullish bets.

Top Trading Lessons
Top Trading Lessons
Recommended by Paul Robinson
Find Out the #1 Mistake Traders Make
Get My Guide

USD/CAD Daily Chart ('may' turn down and take a breather)

USD/CAD daily chart

USD/CAD Chart by TradingView

USD/CAD Weekly Chart (beyond 2016 high lies the 2002 high)

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

News & Analysis at your fingertips.