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
- 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.
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— Written by Michael Boutros, Technical Currency Strategist with DailyFX
Follow Michael on Twitter @MBForex
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