USD/CAD Probes Critical Pivot- Loonie Levels

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Canadian Dollar Technical Price Outlook: Near-term Trade Levels

  • Canadian Dollar up to date technical commerce ranges – Daily & Intraday Charts
  • USD/CAD presses deeper into key technical assist zone- danger stays for near-term inflection
  • Resistance 1.2546, 1.2640/49 (key) – Support 1.2432/70 (key), 1.2362/72, 1.2288

The Canadian Dollar rallied greater than 0.50% in opposition to the US Dollar because the begin of the week with USD/CAD persevering with to press a key technical assist pivot. Once once more we’re on inflection watch with the bears weak into this zone. These are the up to date targets and invalidation ranges that matter on the USD/CAD value charts. Review my newest Strategy Webinar for an in-depth breakdown of this Loonie technical setup and extra.

Canadian Dollar Price Chart – USD/CAD Daily

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

Technical Outlook: In final week Canadian Dollar Price Outlook we famous that the a break of the, “monthly open / opening-range lows taking price towards a key support zone at the 78.6% Fibonacci retracement of the October rally / 100% extension of the December decline at 1.2432/70.” This threshold has continued to restrict the draw back and the main target stays on doable inflection within the days forward. It’s make-or-break right here.

Canadian Dollar Price Chart – USD/CAD 240min

Canadian Dollar Price Chart - USD/CAD 240min - Loonie Trade Outlook - Technical Forecast

Notes: A more in-depth take a look at Loonie value motion reveals USD/CAD persevering with buying and selling inside the confines of the near-term descending pitchfork off the December. Some fine-tuning on the slope sees the median-line converging on the 1.2432/70 assist threshold and additional highlights the technical significance of this pivot zone. Weekly open resistance at 1.2530/46 with near-term bearish invalidation regular on the yearly open / 38.2% retracement of the December decline at 1.2640/49. Note {that a} break decrease from right here may gasoline one other accelerated bout of promoting with such a state of affairs exposing subsequent assist aims on the October low-day shut / 61.8% retracement of the June advance at 1.2362/72,the October low 1.2288 and the 2018 low at 1.2247.

Bottom line: The focus stays on this pivot-zone with the broader decline weak whereas above 1.2432. Form a buying and selling standpoint, be looking out for an exhaustion low with a breach above the weekly vary highs wanted to gasoline a bigger restoration. Stay nimble here- issues may collapse in a short time IF this breaks. Review my newest Canadian Dollar Weekly Price Outlook for a better take a look at the longer-term USD/CAD technical commerce ranges.

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

Canadian Dollar Trader Sentiment – USD/CAD Price Chart

Canadian Dollar Trader Sentiment - USD/CAD Price Chart - Loonie Retail Positioning - Technical Outlook

  • A abstract of IG Client Sentiment reveals merchants are net-long USD/CAD – the ratio stands at +2.74 (73.29% of merchants are lengthy) – sometimes bearish studying
  • Long positions are0.85% increased than yesterday and eight.63% increased from final week
  • Short positions are 13.16% increased than yesterday and 9.23% decrease from final week
  • We sometimes take a contrarian view to crowd sentiment, and the very fact merchants are net-long suggests USD/CAD costs might proceed to fall. Traders are much less net-long than yesterday however extra net-long from final week. The mixture of present positioning and up to date modifications provides us an extra combined USD/CAD buying and selling bias from a sentiment standpoint.

US / Canada Economic Calendar

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

Economic Calendarnewest financial developments and upcoming occasion danger.

Active Technical Setups

– Written by Michael Boutros, Currency Strategist with DailyFX

Follow Michael on Twitter @MBForex

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