Canadian Dollar Short-term Price Outlook: USD/CAD Rally Under Review


Canadian Dollar Technical Price Outlook: Short-term Trade Levels

  • Canadian Dollar up to date technical trade ranges – Daily & Intraday Charts
  • USD/CAD rebound off downtrend help eyes resistance- Weekly/month-to-month vary breakout pending
  • Resistance 1.2938/52, 1.3025 (key), 1.3076- Support 1.2794, 1.2716, 1.2640 (key)

The Canadian Dollar is off greater than 0.9% in opposition to the US Dollar because the begin of the week with USD/CAD rallying into downtrend resistance right now. The transfer retains the give attention to a breakout of the weekly vary as we glance to validate whether or not or not a extra vital low was registered final week. These are the up to date targets and invalidation ranges that matter on the USD/CAD technical worth charts. Review my newest Strategy Webinar for an in-depth breakdown of this Loonie setup and extra.

Canadian Dollar Price Chart – USD/CAD Daily

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

Technical Outlook: In my final Canadian Dollar Short-term Price Outlook, we famous that USD/CAD had, “rebounded off downtrend support with the recovery now testing the median-line ahead of major event risk. From at trading standpoint, the focus is on a breakout of the weekly opening-range for guidance with the threat for a larger recovery within the downtrend.” The rebound off downtrend help coated almost your entire month-to-month vary with USD/CAD rallying greater than 1.6% off the August low. The rally faltered on the 75% parallel (blue) / simply forward of a significant resistance pivot on the 2021 high-day shut / 2019 low at 1.2939/52. The focus is on this pullback with every day help eyed again on the goal month-to-month open at 1.2794.

Canadian Dollar Price Chart – USD/CAD 240min

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

Notes: A better take a look at Loonie worth motion reveals USD/CAD persevering with to trade inside the confines of a descending pitchfork formation extending off the July excessive with worth turning from parallel resistance in early US trade right now. Bearish invalidation now lowered to the July 15th reversal shut at 1.3025– a breach / every day shut above this threshold is required to mark resumption of the broader USD/CAD uptrend.

Once once more, the quick focus is on a breakout of the weekly opening-range with an in depth under the 61.8% Fibonacci retracement of the yearly vary at 1.2716 wanted to mark resumption of the July downtrend in direction of the target yearly open at 1.2640– look for a bigger response in worth there IF reached.

Bottom line: USD/CAD has set the weekly opening-range just under a key resistance pivot and we’re in search of a breakout within the days forward to supply some steerage right here. From at buying and selling standpoint, an excellent zone to cut back long-exposure / elevate protecting stops – losses needs to be restricted to the month-to-month open IF worth is heading greater on this stretch. Review my newest Canadian Dollar Weekly Price Outlook for a better take a look at the longer-term USD/CAD technical trade ranges.

For a whole breakdown of Michael’s buying and selling technique, assessment his Foundations of Technical Analysis collection 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 Short-term Technical Outlook

  • A abstract of IG Client Sentiment reveals merchants are net-short USD/CAD – the ratio stands at -1.17 (46.08% of merchants are lengthy) – sometimes weak bullishstudying
  • Long positions are2.34% decrease than yesterday and 32.50% decrease from final week
  • Short positions are 24.29% greater than yesterday and 49.15% greater from final week
  • We sometimes take a contrarian view to crowd sentiment, and the very fact merchants are net-short suggests USD/CAD costs could proceed to rise. Traders are additional net-short than yesterday and final week, and the mixture of present positioning and up to date modifications offers us a stronger USD/CAD-bullish contrarian 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 threat

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– Written by Michael Boutros, Technical Strategist with DailyFX

Follow Michael on Twitter @MBForex

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