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
USD/CAD Technical Outlook: Trying to Peel Through Substantial Resistance

USD/CAD Technical Outlook: Trying to Peel Through Substantial Resistance

Paul Robinson, Strategist

USD/CAD Technical Outlook

  • USD/CAD trading around resistance, may break through soon
  • Short-term wedge pattern break failing back to the upside

USD/CAD Technical Outlook: Trying to Peel Through Substantial Resistance

The other day I was discussing the rising wedge formation on the 4-hr chart and the confluence of resistance running over from July. The wedge initially broke to the downside, drawing in sellers, but is quickly proving to be a false break.

This type of price action around a key level isn’t uncommon and could send the price of USD/CAD higher here shortly. The area right around 12807/25 is a strong level of resistance, with three highs or closes within that tiny pip range.

We have seen price struggle around this range the past few days. At first with the wedge breaking it was viewed as likely to stay in place, however, with the wedge breakdown proving false and USD/CAD hanging around it is beginning to look like higher levels ahead.

If we see some separation from resistance, then the 12950 level becomes the next major point of contention. This level dates to just before the pandemic turned the world upside down and was validated on a few occasions since. The most recent event was the powerful reversal in August.

On the upside, once (if) some separation can develop then there is a little room for bullish traders to work with before we will have to carefully monitor price behavior at the next key level. If we see USD/CAD turn down again here soon, then we could see some selling set in, but it’s beginning to feel like the more difficult path to trade at this time.

Advertisement

USD/CAD Daily Chart

usd/cad daily chart

USD/CAD 4-hr Chart

usd/cad 4-hr chart

USD/CAD Chart by TradingView

Resources for Forex 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