USD/CAD Gearing up for the Break

Must read

Binance’s Zhao Slams SEC over Commingling Asset Claims

Binance, its US associates and CEO Changpeng Zhao have slammed a latest declare made by the US Securities and Exchange Commission (SEC) that they commingled or...

SBF’s new prices, Shapella’s fork date, emojis as monetary recommendation

Top Stories This Week Unsealed superseding indictment in opposition to Sam Bankman-Fried consists...

Tamadoge (TAMA/USD) Trade Sets on $0.011, Eyeing a Hike

Tamadoge Price Prediction – September 10A collection of notable corrections have prevailed within the transaction commerce tract of Tamadoge in distinction to the US...

Russia to manage digital property as foreign money, McDonald’s eyes the metaverse, YouTube to undertake NFTs and XRP pumps 30%: Hodler’s Digest, Feb. 6-12

Coming each Saturday, Hodler’s Digest will enable you to observe each single vital information story that occurred this week. The greatest (and worst) quotes,...

Canadian Dollar Technical Forecast: USD/CAD Weekly Trade Levels

  • Canadian Dollar up to date technical commerce ranges – Weekly Chart
  • USD/CAD January rally halted at key pivot zone- US CPI on faucet
  • Weekly assist 1.2640, ~1.2424 (crucial) – Resistance 1.2768-1.2814 (key), 1.2975-1.3023

The Canadian Dollar trying to mount a counteroffensive towards the US Dollar early within the month after USD/CAD rallied greater than 2.7% off the January lows. The transfer takes value into a serious technical pivot zone and we’re looking out for a attainable exhaustion low within the days forward. These are the up to date targets and invalidation ranges that matter on the USD/CAD weekly technical value chart heading into key US & Canada inflation stories. Review my newest 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: In final month’s Canadian Dollar Weekly Technical Forecast we highlighted the risk for deeper pullback in USD/CAD whereas noting to , “be on the lookout for a reaction / possible exhaustion low ahead of 1.2530s early in the month…” The US Dollar plummeted greater than 3.7% off the December highs to briefly register an intra-week low at 1.2450 earlier than rebounding off the decrease parallel.

USD/CAD held key assist on the 52-week shifting common on a weekly shut foundation with the next restoration stretching into key resistance into the shut of January at 1.2768-1.2814– a area outlined by the 61.8% Fibonacci retracement of the December decline and the 2021 high-week reversal shut. A topside breach / weekly shut above this threshold is required to mark resumption of the broader uptrend with such a situation exposing the median-line (at the moment ~1.29) and important resistance on the 2020 yearly open / 38.2% retracement of the 2020 decline at 1.2975-1.3023. Initial weekly support rests on the yearly open at 1.2640 with broader bullish invalidation regular on the 52-week shifting common / decrease parallel close to ~1.2524– search for a low forward of this threshold IF USD/CAD is certainly heading increased.

Bottom line: A rebound off uptrend assist takes USD/CAD into a serious technical pivot zone at 1.2768-1.2814- search for a break of the month-to-month opening-range for steerage with the broader outlook weighted to the topside whereas inside this formation off the 2021 lows. From a buying and selling standpoint, be looking out for an exhaustion low forward of 1.2524 within the weeks forward with a breach increased holding the concentrate on slope resistance close to the 2021 highs. Keep in thoughts we get key inflation stories from the US & Canada over the following week- count on volatility and be conscious of the weekly closes. Review my newest Canadian Dollar Price Outlook for a more in-depth have a look at the near-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 - USDCAD Technical Outlook

  • A abstract of IG Client Sentiment reveals merchants are net-long USD/CAD – the ratio stands at +1.71 (63.1% of merchants are lengthy) – sometimes bearish studying
  • Long positions are4.68% decrease than yesterday and 4.39% increased from final week
  • Short positions are 18.13% increased than yesterday and 12.58% 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 could 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 Key Data Releases - Loonie Weekly Event Risk

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

factor contained in the factor. This might be not what you meant to do!
Load your utility’s JavaScript bundle contained in the factor as a substitute.

More articles


Please enter your comment!
Please enter your name here

Latest article

Fireblocks Introduces ‘Off Exchange’ to Address Exchange Counterparty Risk, Integrates with Deribit

On November 28, 2023, Fireblocks, an modern digital asset operations platform, introduced the introduction of 'Off Exchange', a first-of-its-kind resolution aiming to revolutionize the...

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...

Dash 2 Trade (D2T/USD) Maintains Stability at $0.0043, Positioning for Potential Bullish Price Movement

Amidst the noticed volatility within the Dash 2 Trade market, as mirrored within the higher and decrease shadows of candlesticks since November 23, a...