Canadian Dollar Technical Price Outlook: USD / CAD Weekly Commodity Levels
- Canadian dollarupdated technical trade level – weekly schedule
- USD / CAD the rally is running out of technical resistance – the risk of a broader upward adjustment
- Critical Support 1.2313 – Key Resistance 1.2774
The Canadian dollar is ready to break the three-week loss series US dollar together USD/CAD fell more than 0.2% before trading in New York on Friday to trade at 1.2580. The losses stem from a large setback in technical resistance, and although the broader outlook remains constructive, progress may be vulnerable at the end of the month. These are updated targets and cancellation levels USD/CAD weekly technical price charts. Overview my last Strategy webinar for its thorough distribution Loonie technical setup and more.
Canadian Dollar Price Chart – USD / CAD per week
Notes:In my last Canadian dollar Weekly price outlook we noted that the USD / CAD breakthrough had expanded to a key technology resistance range 1.2579-1,2634– The area defined under the 2018 target is open and 23.6% Fibonacci Reversing the 2020 decline. We look for possible price fluctuations outside this threshold….Top breakage / closure median line (blue) / open every year 1.2713 would be needed to mark a continuation with a scenario that would reveal a 52-week moving average / 2021 high week closing time 1.2762 / 74 and annual peaks 1.2881. “ The price registered briefly and rose to a high of 1.2807 before being sharply reversed, Loonie was ready to close a week ago in the resistance zone from 1.2579 to 1.2634. Was it short-lived exhaustion great?
At the beginning of the week, the focus will be on immediate potential exhaustion if this obstacle threshold is below. Initial week support rests in May trend line which is closely supported 1.24handle and 61.8% retracement at 1.2312– in the event of possible negative depletion of both zones of interest, if this has been achieved. Ultimately, the violation / closure above 1.2774 is necessary to mark a continuation with a scenario that reveals the following rexistence targets for the 2020 annual open / 38.2% 1.2975–1.3023.
Bottom line: At the end of this week’s high-profile week, the USD / CAD rally is exhausted on an upward trend – bulls may be in danger in the near future. From a trade perspective, meetings should be limited to the annual opening at 1.2713IF the interpretation of the correction is correct – in the end, a deeper withdrawal may offer better opportunities closer to trend support than breaching / closing higher targets to 1.30. Remember FOMC the interest rate decision is touched on next week – stay quick. Check out my latest review Canadian dollar Price outlookfor a closer look at the level of USD / CAD technical trade in the near future.
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Canadian Dollar Trader Rating – USD / CAD Price Chart
- Summary IG customer mood indicates that traders have a net long USD / CAD ratio of +2.28 (69.50% of traders are long) – usually bear reading
- There are long positions8.95% higher than yesterday and 30.47% higher than last week
- Short positions are unchanged from yesterday and 31.76% lower than last week.
- We usually view the contradictory situation of the crowd and the fact that traders are net long indicates a continuing decline in USD / CAD prices. Traders are net longer than yesterday and last week, and the combination of current positioning and recent changes gives us a stronger USD / CAD rate feeling position.
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– Written Michael Boutros, DailyFX Technical Currency Strategist
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