• Contact Us
  • Homepages
Most Forex
  • For Beginners
  • Strategies
  • Technical Analysis
  • Product Reviews
  • News
  • Videos
No Result
View All Result
  • For Beginners
  • Strategies
  • Technical Analysis
  • Product Reviews
  • News
  • Videos
No Result
View All Result
Most Forex
No Result
View All Result
Home Technical Analysis

USD/CAD Coils– Loonie Breakout Imminent

Forex Tips by Forex Tips
August 25, 2020
in Technical Analysis
0
USD/CAD Returns to Range Support
189
SHARES
1.5k
VIEWS
Share on FacebookShare on Twitter


Canadian Dollar Technical Price Outlook: Near-term Trade Levels

  • Canadian Dollar updated technical trade levels – Daily & Intraday Charts
  • USD/CAD sell-off stalls at Fibonacci support- weekly opening-range in focus
  • Bears vulnerable while above 1.3151 – key resistance 1.34

The Canadian Dollar has been rangebound against the US Dollar for weeks with USD/CAD holding just above long-term Fibonacci support. While the broader outlook remains weighted to the downside, the immediate decline remains vulnerable while above this threshold and we’re looking for a breakout in the days ahead for further guidance. These are the updated targets and invalidation levels that matter on the USD/CAD price charts heading into the close of the month. Review my latest Weekly Strategy Webinar for an in-depth breakdown of this Loonie trade setup and more.

Starts in:

Live now:

Aug 31

( 12:08 GMT )

Live Weekly Strategy Webinars on Mondays at 12:30GMT

Weekly Scalping Webinar

Register for webinar

Join now

Webinar has ended

Canadian Dollar Price Chart – USD/CAD Daily

Canadian Dollar Price Chart - USD/CAD Daily - Loonie Trade Outlook - Technical Forecast

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

Technical Outlook: In my last Canadian Dollar Price Outlook we noted that the USD/CAD sell-off was approaching key support, “with a break below 1.3152 needed to mark resumption of the broader March downtrend.” Loonie has continued to respect Fibonacci support here for the past five-days with price marking an outside-day reversal off the lows into the start of the week.

The immediate focus is on a breakout of this near-term range just above the 88.6% retracement with channel resistance now converging on the lower parallel of a longer-term ascending pitchfork we’ve been tracking off the 2016 / 2017 lows (~1.3240s).

Canadian Dollar Price Chart – USD/CAD 120min

Canadian Dollar Price Chart - USD/CAD 120min - Loonie Trade Outlook - Technical Forecast

Notes: A closer look at Loonie price action shows USD/CAD trading within the confines of a well-defined descending pitchfork formation extending off July highs with the weekly opening-range taking shape just below the upper parallel. A topside breach exposes resistance objectives at 1.3270 and the June low / 78.3% retracement at 1.3315/22. Ultimately a break / close above monthly-open resistance at the 1.34-handle is needed to suggest a larger price reversal is underway. Weekly-open support at 1.3170 with a close below 1.3151 marking resumption towards 1.3102 and the 61.8% retracement of the 2017 rally at 1.3057.

Forex for Beginners

Forex for Beginners

Recommended by Michael Boutros

New to Forex Trading? Get started with this Beginners Guide

Bottom line: The USD/CAD has set a well-defined range just above support – look to the breakout for guidance. From a trading standpoint, a good zone to reduce short-exposure / lower protective stops – be on guard for downside exhaustion while above 1.3151 with a breakout of this multi-week formation needed to fuel a larger correction. Ultimately a recovery here may offer more favorable opportunities closer to downtrend resistance. Review my latest Canadian Dollar Weekly Price Outlook for a closer look at the longer-term USD/CAD technical trade levels.

For a complete breakdown of Michael’s trading strategy, review his Foundations of Technical Analysis series on Building a Trading Strategy

Canadian Dollar Trader Sentiment – USD/CAD Price Chart

Canadian Dollar Trader Sentiment - USD/CAD Price Chart - Loonie Trade Outlook - Technical Forecast

  • A summary of IG Client Sentiment shows traders are net-long USD/CAD – the ratio stands at +1.93 (65.83% of traders are long) – weak bearish reading
  • Long positions are1.63% lower than yesterday and 18.35% lower from last week
  • Short positions are 6.55% lower than yesterday and 5.72% higher from last week
  • We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests USD/CAD prices may continue to fall. Yet, traders are more net-long than yesterday but less net-long from last week and the combination of current positioning and recent changes gives us a further mixed USD/CAD trading bias from a sentiment standpoint.



of clients are net long.



of clients are net short.

Change in Longs Shorts OI
Daily 0% 45% 15%
Weekly 7% 34% 17%

—

Key US / Canada Data Releases

US / Canada Key Data Releases - USD/CAD Economic Calendar - Loonie Event Risk

Economic Calendar – latest economic developments and upcoming event risk.

Active Trade Setups

– Written by Michael Boutros, Currency Strategist with DailyFX

Follow Michael on Twitter @MBForex





Source link

Share76Tweet47

Related Posts

00 GMT when AUD/USD traded near 0.78.

00 GMT when AUD/USD traded near 0.78.

by Forex Tips
January 27, 2021
0

Number of traders net-short has decreased by 16.31% from last week. SYMBOL TRADING BIAS NET-LONG% NET-SHORT% CHANGE IN LONGS...

Dollar as a Safe Haven or Source of Global Instability?

US Dollar Technical Outlook Turning Positive: USD Charts to Watch

by Forex Tips
January 27, 2021
0

USD Technical Outlook US Dollar working on turning the cornerThe US Dollar Index (DXY) is in the process of...

USD/CAD Returns to Range Support

Will USD/CAD, WTI Fall as Long Bets Rise?

by Forex Tips
January 27, 2021
0

Canadian Dollar, USD/CAD, Crude Oil, Technical Analysis, Retail Trader Positioning - Talking PointsIGCS warns that USD/CAD and crude oil...

Dollar Strength Brings Silver to its Knees

Silver Price Forecast: Pandemic Uptrend Support Nearby

by Forex Tips
January 27, 2021
0

Silver Price Forecast Overview:Silver prices are proving sluggish as January comes to a close, with the uptrend from the...

Has Everyone Went to Gamestop?

Has Everyone Went to Gamestop?

by Forex Tips
January 26, 2021
0

Bitcoin, BTC/USD Talking Points:The Bitcoin bull has taken a back seat, at least for now, but speculative fervor continues...

Load More

Categories

  • Crypto Strategies
  • Currency
  • For Beginners
  • Forex News
  • Forex Trading Tips & Strategies
  • Investment
  • Technical Analysis
  • Videos
Forex Pulse Detector

Categories

  • Crypto Strategies
  • Currency
  • For Beginners
  • Forex News
  • Forex Trading Tips & Strategies
  • Investment
  • Technical Analysis
  • Videos

Newsletter

  • Home
  • Contact
  • Privacy Policy
  • Store

© 2018 Forex Blog

No Result
View All Result
  • Contact Us
  • Homepages

© 2018 Forex Blog.