USD/CAD Threatens January Uptrend- NFP 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 snaps again into resistance on the yearly open- BoC / FOMC on faucet
  • Resistance 1.2724 (key), 1.2767, 1.2813 – Support 1.2664, 1.2640 & 1.2582 (key)

The US Dollar fell greater than 0.75% in opposition to the Canadian Dollar for the reason that begin of the week with USD/CAD now testing the January uptrend forward of key US / Canada employment information on Friday. 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 USD/CAD the, “ recovery stretched into the December trendline before pulling back with the immediate focus now on confluent resistance at the objective yearly open / 38.2% retracement of the December decline at 1.2640/46– we’re looking for near-term inflection off this zone with a daily close above needed to validate the breakout.” Price spent three-days testing this resistance zone earlier than breaking out with the rally briefly extending previous the 61.8%Fibonacci retracement of the December decline at 1.2767 earlier than pulling again. The focus now shifts to assist as USD/CAD exams the slope of the broader uptrend- we’re searching for an exhaustion low within the days forward.

Canadian Dollar Price Chart – USD/CAD 120min

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

Notes: A better have a look at Loonie value motion reveals USD/CAD persevering with buying and selling throughout the confines of the an ascending January lows with an embedded descending channel defining the latest pullback from uptrend resistance. Initial assist now rests with the sliding parallel / 38.2% retracement of the January rally at 1.2664 with the target yearly open simply decrease at 1.2640– a break under this threshold may danger a bigger correction with broader bullish invalidation now raised to the 61.8% retracement at 1.2582. Initial resistance now stands with the yearly high-day shut at 1.2724 with a breach / shut above 1.2767 wanted to mark resumption of the January advance concentrating on the yearly highs at 1.2813 and past.

Bottom line: The USD/CAD pullback is testing near-term uptrend assist right here – for now, we’re looking out for a attainable exhaustion low. From a buying and selling standpoint, a superb zone to scale back short-exposure / decrease protecting stops- losses ought to be restricted to the yearly-open IF value is heading increased with a breach of this near-term channel wanted to shift the main focus increased once more. Keep in thoughts we now have the discharge of US Non-Farm Payrolls (NFP) and Canada employment information on Friday- keep nimble right here. Review my newest Canadian Dollar Weekly Price Outlook for a better have a look at the longer-term USD/CAD technical commerce ranges.

For a whole 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 - USDCAD Technical Outlook

  • A abstract of IG Client Sentiment reveals merchants are net-long USD/CAD – the ratio stands at +1.43 (58.88% of merchants are lengthy) – sometimes a weak bearish studying
  • Long positions are8.24% increased than yesterday and 5.92% decrease from final week
  • Short positions are 13.03% increased than yesterday and 19.25% increased from final week
  • We sometimes take a contrarian view to crowd sentiment, and the very fact merchants are net-long suggests USD/CAD costs could proceed to fall. Yet merchants are much less net-long than yesterday and in contrast with final week. Recent modifications in sentiment warn that the present USD/CAD value development could quickly reverse increased regardless of the very fact merchants stay net-long.

US / Canada Economic Calendar

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

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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