Canadian Greenback Technical Worth Outlook: Brief-term Commerce Ranges
- Canadian Greenback up to date technical commerce ranges – Every day & Intraday Charts
- USD/CAD rally rejected at uptrend resistance- danger for bull-market correction
- Resistance 1.3812/55, 1.3945/71 (key), 1.4098- Help 1.3632/51, 1.3502/12 (key), 1.3224/30
The US Greenback’s assault on the Canadian Greenback has stalled with USD/CAD responding to technical uptrend resistance. Whereas the broader outlook stays weighted to the topside, the advance could also be weak right here near-term and the main focus is on a breakout of the October vary for steerage. These are the up to date targets and invalidation ranges that matter on the USD/CAD technical value charts. Overview my newest Technique Webinar for an in-depth breakdown of this Loonie setup and extra.
Canadian Greenback Worth Chart – USD/CAD Every day
Chart Ready by Michael Boutros, Technical Strategist; USD/CAD on Tradingview
Technical Outlook: The Canadian Greenback is trying to snap a two-month shedding streak of greater than 8% towards the US Greenback. A rally of greater than 3.5% off the October lows faltered for a second time on constructing momentum divergence final week on the higher parallel of this ascending pitchfork formation I’ve been monitoring since final yr. Whereas the broader outlook stays constructive, the fast advance could also be weak right here and the risk rises for additional topside exhaustion whereas beneath lateral resistance at 1.3812/55– a area outlined by the 1.618% extension, the target October month-to-month open and the April 2020 low.
Canadian Greenback Worth Chart – USD/CAD 240min
Notes: A more in-depth have a look at Loonie value motion exhibits USD/CAD buying and selling inside the confines of a newly recognized descending pitchfork formation extending off the September / October highs. Preliminary assist rests on the 1.3632/51 Fibonacci confluence with a break / shut beneath the month-to-month opening-range low at 1.3502/15 wanted to recommend a extra important correction could also be underway in direction of the decrease parallels / 1.3224/30. In the end, a breach / shut above the 2020 April low-day shut / March weekly reversal-close at 1.3945/71 is required to mark a resumption of the broader uptrend with such a state of affairs exposing subsequent resistance targets at 1.4098 and the 2020 high-0week shut a 1.4336.
Backside line: USD/CAD has responded to technical resistance and the main focus is on this pullback inside the broader uptrend. From at buying and selling standpoint, rallies ought to be restricted to the weekly open (1.3870) IF value is heading decrease on this stretch- look for a bigger response on a check of the 1.35-handle with a breakout of the October vary to supply additional steerage right here. In the end, a bigger correction might supply extra favorable alternatives nearer to development assist with a breach above 1.3971 wanted to gas the following leg greater in value. Overview my newest Canadian Greenback Weekly Worth Outlook for a better have a look at the longer-term USD/CAD technical commerce ranges.
For an entire breakdown of Michael’s buying and selling technique, overview his Foundations of Technical Evaluation sequence on Constructing a Buying and selling Technique
Canadian Greenback Dealer Sentiment – USD/CAD Worth Chart
- A abstract of IG Shopper Sentiment exhibits merchants are net-short USD/CAD – the ratio stands at -1.28 (43.91% of merchants are lengthy) – sometimes weak bullish studying
- Lengthy positions are 17.96% greater than yesterday and 37.86% greater from final week
- Brief positions are 11.75% decrease than yesterday and 29.49% decrease from final week
- We sometimes take a contrarian view to crowd sentiment, and the actual fact merchants are net-short suggests USD/CAD costs might proceed to rise. But merchants are much less net-short than yesterday and in contrast with final week. From a sentiment standpoint, the latest modifications in positioning warn that the present USD/CAD value development might quickly reverse decrease regardless of the actual fact merchants stay net-short.
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– Written by Michael Boutros, Technical Strategist with DailyFX
Observe Michael on Twitter @MBForex
DailyFX offers foreign exchange information and technical evaluation on the tendencies that affect the worldwide foreign money markets.