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: Running Towards Significant Long-term Level

USD/CAD Technical Outlook: Running Towards Significant Long-term Level

Paul Robinson, Strategist

USD/CAD Technical Outlook

  • USD/CAD running towards 2-yr+ level located around 12950
  • Will it finally break through if tested, or turn price back lower again?

USD/CAD Technical Outlook: Running Towards Significant Long-term Level

USD/CAD is coming off a nice set-up from confluent support consisting of a trend-line from the summer and the 200-day moving average. The sprint higher has a major long-term level of resistance in focus around the 12950 level, one that has acted as a ceiling for over a year.

The level dates to the final trading session of 2019 prior to the pandemic panic rip. The level held as support temporarily in November 2020 before becoming resistance on three occasions since. The most recent reversal off the 12950 area was in December.

With the way USD/CAD is ripping it may not be long before we see resistance tested. Perhaps a set-back develops prior to its arrival, but overall it is anticipated at some point soon we will see something develop around 12950.

That something may be another top, or at least a temporary one, or it could be a breakout that paves the way for even higher prices. As per usual, it’s all about the price action that unfolds around major levels. Does a rejection develop or strong momentum play out – or something in between?

Too soon to tell, obviously, but worth keeping on the radar as time moves on. For now, unless long from good levels (i.e. confluent support), new longs don’t hold much risk/reward appeal as a set-back could develop that leaves fresh positions vulnerable. There isn’t really any good level to lean on for setting stops at this time. Shorting holds no appeal in the absence of any meaningful resistance, but that could should we soon get to 12950.

Advertisement

USD/CAD Daily Chart

usd/cad daily 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