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
Oil - US Crude
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
Gold
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
More View more
Real Time News
  • Nasdaq 100 Index builds on yesterday’s momentum, eying a key level of resistance. Get your market update from @RichardSnowFX here:https://t.co/Kp7lfk2Puf https://t.co/P8N7RoBCKE
  • NY Fed accepts $987.28 billion in reverse repo operations $USD $DXY
  • last week I looked at whether Loonie had bottomed. this is part 2 Canadian Dollar Price Forecast: USD/CAD Breaches 1.2500 - Loonie Levels https://www.dailyfx.com/forex/fundamental/daily_briefing/session_briefing/daily_fundamentals/2021/07/29/Canadian-Dollar-Price-Forecast-USD-CAD-USDCAD-Breaches-12500-Loonie-Levels.html https://t.co/X9Wi1kLpIf https://t.co/q1s6r5aOqY
  • RT @BrendanFaganFx: Robinhood IPO Set to Take Equity Markets by Storm, First Trades at $38 $HOOD Link: https://www.dailyfx.com/forex/market_alert/2021/07/29/Robinhood-IPO-Set-to-Take-Equity-Markets-by-Storm-First-Trades-at-38.html
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 92.47%, while traders in Wall Street are at opposite extremes with 74.57%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/ydWxl8vBrm
  • RT @IGSquawk: Robinhood opens at $38 before briefly touching through $40 $HOOD 37.05 -2.5%
  • Commodities Update: As of 16:00, these are your best and worst performers based on the London trading schedule: Silver: 3.09% Gold: 1.40% Oil - US Crude: 1.36% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/RaPjCTUhoN
  • Forex Update: As of 16:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.86% 🇨🇦CAD: 0.66% 🇬🇧GBP: 0.41% 🇪🇺EUR: 0.33% 🇯🇵JPY: 0.30% 🇦🇺AUD: 0.28% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/aedAWqGkhx
  • In the aftermath of the FOMC's taper talk, the US 2Q GDP miss has added to the Dollar's tumble but not weighed the S&P 500. DailyFX's @JohnKicklighter 👇 https://t.co/639Y34LoWI
  • In the aftermath of the FOMC's taper talk, the US 2Q GDP miss has added to the Dollar's tumble but not weighed the S&P 500. DailyFX's @JohnKicklighter discusses Down pointing backhand index👇 https://t.co/hJbVcsxyER
Canadian Dollar Technical Price Outlook: USD/CAD Recovery Underway

Canadian Dollar Technical Price Outlook: USD/CAD Recovery Underway

Michael Boutros, Strategist

Canadian Dollar Technical Price Outlook: Near-term Trade Levels

  • Canadian Dollar updated technical trade levels – Daily & Intraday Charts
  • USD/CAD Post-FOMC rebound shifts near-term focus higher
  • Support 1.3323 - Key resistance zone back at 1.3602/47

The US Dollar plummeted more than 9% from the March highs against the Canadian Dollar with USD/CAD responding to Fibonacci support this week on the heels of the FOMC interest rate decision. Although the broader risk remains lower, the post-Fed rally has cleared the weekly opening-range highs and threatens a larger recovery near-term. These are the updated targets and invalidation levels that matter on the USD/CAD price charts heading into the close of the week. Review my latest Weekly Strategy Webinar for an in-depth breakdown of this Loonie trade setup and more.

Canadian Dollar Price Chart – USD/CAD Daily

Canadian Dollar Price Chart - USD/CAD Daily - Loonie Trade Outlook, USDCAD Technical Forecast

Chart Prepared by Michael Boutros, Technical Strategist; USD/CAD on Tradingview

Technical Outlook: In my last Canadian Dollar Price Outlook we noted that USD/CAD was, “testing a critical support zone at 1.3602/10 – a region defined by the 61.8% Fibonacci retracement of the yearly range and the 100% extension of the decline off the March high…with a break / close below needed to keep the short-bias viable with subsequent support objectives at the Mary 2019 high-day close at 1.3515 and the March / 2017 opens at 1.3433/35.

Price broke key support into the open of June trade with the decline taking out both support objectives before rebounding off the 78.6% Fibonacci retracement yesterday at 1.3323. The rally threatens a larger recovery with key resistance now back at 1.3602/10 – broader bearish invalidation now lowered to the 2017 HDC at 1.3647- both areas of interest for possible topside exhaustion IF reached.

Canadian Dollar Price Chart – USD/CAD 120min

Canadian Dollar Price Chart - USD/CAD 120min - Loonie Trade Outlook - USDCAD Technical Forecast

Notes: A closer look at Loonie price action shows USD/CAD trading within the confines of a near-term descending pitchfork formation with price now approaching initial resistance at the Mary 2019 high-day close at 1.3515. Initial support now rests with the 2017 open at 1.3435 with a break / close below 1.3323 needed to mark resumption towards 1.3221 and the lower parallels.

Bottom line: The Canadian Dollar rally has taken USD/CAD into Fibonacci support and the focus is on this near-term recovery in price. Look for downside exhaustion head of the weekly open IF price is indeed heading higher on this stretch – ultimately, the risk remains lower while within this formation. Review my latest Canadian Dollar Weekly Price Outlook for a closer look at the longer-term USD/CAD technical trade levels.

For a complete breakdown of Michael’s trading strategy, review his Foundations of Technical Analysis series on Building a Trading Strategy

Canadian Dollar Trader Sentiment – USD/CAD Price Chart

Canadian Dollar Trader Sentiment - USD/CAD Price Chart - Loonie Outlook - Technical Forecast
  • A summary of IG Client Sentiment shows traders are net-long USD/CAD - the ratio stands at +2.04 (67.15% of traders are long) – bearish reading
  • Long positions are11.38% lower than yesterday and 10.70% lower from last week
  • Short positions are8.87% lower than yesterday and 12.85% lower from last week
  • We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests USD/CAD prices may continue to fall. Traders are less net-long than yesterday but more net-long from last week. The combination of current positioning and recent changes gives us a further mixed USD/CAD trading biasfrom a sentiment standpoint.

---

Key US / Canada Data Releases

Key US / Canada Data Releases - USD/CAD Event Risk - Loonie Economic Calendar

Economic Calendar - latest economic developments and upcoming event risk.

Active Trade Setups

- Written by Michael Boutros, Currency Strategist with DailyFX

Follow Michael on Twitter @MBForex

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

DISCLOSURES