Canadian Dollar Technical Forecast: USD/CAD Weekly Trade Levels
- Canadian Dollar up to date technical trade ranges – Weekly Chart
- USD/CAD fails third try and breach key resistance fails- correction danger
- Support 1.2784, 1.2688, 1.2640 (vital) – Resistance 1.2975-1.3023 (key), 1.3230, 1.3370
The Canadian Dollar is on the offensive towards the US Dollar this week with USD/CAD plummeting greater than 1.2%. A 3rd reversal off main technical resistance leaves the broader uptrend susceptible but once more within the days forward and the correction could supply extra favorable alternatives nearer to pattern assist. These are the up to date targets and invalidation ranges that matter on the USD/CAD weekly technical worth chart. 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 my final Canadian Dollar Weekly Technical Forecast we famous that, “USD/CAD is testing a key resistance pivot for third time here and once again the immediate long-bias may be vulnerable while below.” The degree in focus was 1.2975-1.3023- a area outlined by the target 2020 yearly open and the 38.2% Fibonacci retracement of the 2020 decline. Price registered an intraweek excessive at simply pips shy of the 100% extension of the 2021 advance at 1.3230 (excessive registered at 1.3223) however didn’t mark a weekly shut above. The subsequent reversal has now plunged greater than 2.8% with USD/CAD inside placing distance of the month-to-month low.
Initial weekly support rests with the June low-week reversal shut at 1.2784 and is backed by the 52-week shifting common at 1.2688. Broader bullish invalidation stays unchanged with the decrease parallel / goal yearly open at 1.2640. Topside resistance regular at 1.3023 with a breach / weekly shut above wanted to mark resumption in the direction of 1.3230 and the 2018 high-week shut at 1.3370.
Bottom line: USD/CAD is testing a key resistance pivot for third time right here and as soon as once more the rapid long-bias could also be susceptible whereas beneath. From a buying and selling standpoint, a great zone to cut back long-exposure / elevate protecting stops – losses ought to be restricted to the 1.2784 IF worth is heading larger on this stretch. Review my newest Canadian Dollar Shor-term Price Outlook for a more in-depth take a look at the near-term USD/CAD technical trade ranges.
For an entire breakdown of Michael’s buying and selling technique, overview 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 +1.79 (64.11% of merchants are lengthy) – usually bearish studying
- Long positions are0.36% decrease than yesterday and 39.75% larger from final week
- Short positions are 7.19% larger than yesterday and 21.75% decrease from final week
- We usually take a contrarian view to crowd sentiment, and the very 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 additional blended USD/CAD buying and selling bias from a sentiment standpoint.
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— Written by Michael Boutros, Technical Strategist with DailyFX
Follow Michael on Twitter @MBForex