USD/CAD Confirms Resistance- Loonie Levels

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Canadian Dollar Technical Forecast: USD/CAD Weekly Trade Levels

  • Canadian Dollar up to date technical commerce ranges – Weekly Chart
  • USD/CAD threatens bigger correction off technical resistance- NFP / Canada Employment on faucet
  • Weekly assist ~1.26, 1.2530(key) – Resistance 1.2814, 1.2975-1.3023 (crucial)

The Canadian Dollar is on the defensive towards the US Dollar into the beginning of the 12 months as USD/CAD makes an attempt to snap a two-week shedding streak. The Dollar restoration could also be short-lived within the days forward as value threatens a bigger correction inside the broader uptrend. These are the up to date targets and invalidation ranges that matter on the USD/CAD weekly technical value chart heading into January commerce with US Non-Farm Payrolls and Canada employment information on faucet tomorrow. Join my weekly Strategy Webinar for an in-depth breakdown of this Loonie technical setup and extra.

Canadian Dollar Price Chart – USD/CAD Weekly

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

Notes: USD/CAD registered a excessive (1.2963) simply pips forward of a crucial resistance zone final 12 months at 1.2975-1.3023– a area outlined by the 2020 yearly open / 38.2% Fibonacci retracement of the 2020 decline. A pullback of greater than 1.7% faltered simply forward of the 25% parallel of a proposed ascending pitchfork formation extending off the 2021 lows- is the correction full?

The focus into the beginning of month is on figuring out an exhaustion low in value inside the confines of the broader June advance. Initial weekly support rests close to the December lows round ~1.26 backed by a extra vital confluence zone on the 52-week transferring common / 61.8% retracement at 1.2533/46 – losses must be restricted to this threshold IF the US Dollar is heading increased on this stretch. Resistance stands with the 2021 high-week shut at 1.2814 with a breach / shut above 1.3023 wanted to gasoline the subsequent leg increased in the direction of subsequent resistance targets into the higher parallel / 100% extension at 1.3230.

Bottom line: The danger stays for a deeper pullback in USD/CAD whereas beneath key resistance at 1.2975-1.3023. From a buying and selling standpoint, be looking out for a response / potential exhaustion low forward of 1.2530s early within the month with a breach above the 2021 vary highs wanted to clear the way in which for the Dollar. Stay nimble heading into the shut of the week with US Non-Farm Payrolls (NFP) and Canada employment on faucet tomorrow. I’ll publish an up to date Canadian Dollar Price Outlook as soon as we get additional readability on the near-term USD/CAD technical commerce ranges.

For a whole breakdown of Michael’s buying and selling technique, evaluation his Foundations of Technical Analysis sequence on Building a Trading Strategy

Canadian Dollar Trader Sentiment – USD/CAD Price Chart

Canadian Dollar Trader Seniment - USD/CAD Price Chart - Loonie Retail Positioning

  • A abstract of IG Client Sentiment reveals merchants are net-long USD/CAD – the ratio stands at +1.42 (58.71% of merchants are lengthy) – sometimes bearish studying
  • Long positions are0.38% decrease than yesterday and three.99% decrease from final week
  • Short positions are 16.59% decrease than yesterday and seven.46% decrease from final week
  • We sometimes take a contrarian view to crowd sentiment, and the actual fact merchants are net-long suggests USD/CAD costs might proceed to fall. Traders are additional net-long than yesterday and final week, and the mixture of present positioning and up to date modifications provides us a stronger USD/CAD-bearish contrarian buying and selling bias from a sentiment standpoint.

US / Canada Economic Calendar

US Canada Economic Calendar

Economic Calendarnewest financial developments and upcoming occasion danger.

Active Weekly Technical Charts

— Written by Michael Boutros, Technical Currency Strategist with DailyFX

Follow Michael on Twitter @MBForex

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Our knowledge reveals merchants at the moment are net-long USD/CAD for the primary time since Sep 29, 2023 when USD/CAD traded close to 1.36.

Number of merchants net-short has decreased by 19.21% from final week.SYMBOLTRADING BIASNET-LONG%NET-SHORT%CHANGE IN LONGSCHANGE IN SHORTSCHANGE IN OIUSD/CADBEARISH51.44%48.56%5.67% Daily46.95% Weekly-10.42% Daily-19.21% Weekly-2.80% Daily5.15% Weekly of...