Technical price outlook for the Canadian dollar: short – term trade levels
- Canadian dollar updated technical trade levels – daily and intraday charts
- USD / CAD falls freshly on the annual rise / impediment of 2021 – corrective risk
- Durability 1.2713, 1.2822- cart repeal – support 1.2590, 1.2469-1.2366 critical
The Canadian dollar rose more than 1.5% against the greenback this week USD/ CAD reverses the sharp upward trend. Although the broader outlook remains constructive, the risk of larger corrections is still below the annual high. These are updated targets and invalidity levels USD/CAD price charts this week.
Canadian Dollar Price Chart – USD / CAD per day
Technical outlook: In my last Canadian dollar price outlook we noted that “A Supported by the rebound in accession support, the USD / CAD observation is against a short-term downward trend. Loonie was held in August opening area 17 includedth breaking the tops reveals almost 3% of the rally to its highest annual level. The rally turned abruptly fork resistance last week with a USD / CAD parity of over 38.2% of the 2021 range in just three days. Is major exhaustion great?
Initial support rests at 1.2590 behind it is a sliding parallel that extends from the low (red) around the end of June 1.25-handle and aim monthly open at 1.2469. Wider bullish invalidity has now been raised to its lowest level in March / 61.8% Fibonacci retracement / 100 day moving average clock 1.2365 / 73– a weakness above this threshold indicates that a greater or more significant reversal of trends is under way.
Canadian Dollar Price Chart – USD / CAD 120 min
Notes: A closer look at Loonie’s pricing shows the severity of the recent collapse from an annual increase / increase rexistence USD / CAD settled slightly above Fibonacci support today. Initial resistance now stands at the annual opening / 38.2% 1.2713 / 20 supported by the median line (~1.2760s) and 1.28handle. Ultimately, a violation / closure over a weekly open / high day closure 1.2818 / 23 is needed to mark the continuation of a broader upward trend towards the January peaks at 1.2881 and elsewhere.
Bottom line: The USD / CAD reversed the resistance last week as the retreat approached the uptrend – looking for a reaction towards lower parallels. From a commercial point of view, look at a 1.28-speed recovery before exhaustion, when the price actually falls with a lower correction, which is likely to offer more favorable entries closer to the uptrend. Review my last one Canadian dollar weekly price forecast Take a closer look at the longer-term level of USD / CAD technical trade.
For a complete breakdown of Michael’s trading strategy, review his strategy Series Fundamentals of Technical Analysis on Bcultivation a Tradiant Strategy
Canadian Dollar Trader Mood – USD / CAD Price Chart
- Summary IG customer mood shows that traders have a net long USD / CAD ratio of + 2.61 (72.32% of traders are long) – usually cart reading
- There are long positions36.48% higher than yesterday and 32.65% higher than last week
- Short positions are 16.21% lower than yesterday and 28.42% lower than last week
- We usually take the opposite view of the mood of the crowd and the fact that the net length of traders indicates that USD / CAD prices may continue to fall. Traders are even taller than yesterday and last week, and the combination of current positioning and recent changes gives us a stronger trading bias against the US dollar / CAD. feeling position.
US / Canada main data releases
Economic calendar – recent economic developments and the risk of upcoming events.
Active technical settings
– Written Michael Boutros, Currency strategist with DailyFX
Watch Michael Twitter @MBForex