Canadian dollar technical forecast: neutral
- Canadian dollarupdated technical trade levels – weekly schedule
- USD / CAD recovery falls into an annual open threat of major improvements
- Weekly support 1.2460, 1.2314 / 66 (key) -critical endurance 1.2975-1.3023
The Canadian dollar interrupted the two-week winning streak US dollar together USD/CAD rose more than 0.9% before closing the U.S. on Friday. The price closed the week’s highest level and although the broader outlook remains constructive, a larger correction still threatens to fall short of the annual target. These are updated targets and invalidity 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:Last month Canadian dollar Weekly price forecast we noted that the USD / CAD approached the resistance, while warning that: “In such a scenario, a breach / closure above the 52-week moving average needs to be confirmed in order to confirm a larger break here. 1.2774 and critical resistance 1.2975-1.3023. The price was recorded at a high of 1.2949 last month before abruptly reversing as Loonie now traded below the 52-week moving average / target in 2021 each year. 1.2713. Although the reversal of the annual lows keeps the broader outlook constructive, there is a risk that a deeper withdrawal will fall below this threshold.
Initially a week support rests at a low clock with a 2016 swing 1.2460 supported by the critical zone 1.2306 / 66 area defined by 100% expansion, low closure in 2018 and 61.8% Fibonacci search for the year range again.
Upper side rexistence back at 1.2713 and the annual peak week ends at 1.2822 violation / closure above 1.2975-1.3023 it was still necessary to heat the next stage more expensive.
Bottom line: The USD / CAD rebound is still vulnerable, but below 1.2822- we expect a low level in the coming weeks. From a commercial point of view, look for possible negative exhaustion before 1.23 IF prices actually rise and a breach above 1.3023 is finally necessary to confirm the reversal of the downward trend in March 2020. Review my last one Canadian dollar Price prospectsa closer look at the USD / CAD technical trade in the near future.
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 +1.76 (63.81% of traders are long) – usually cart reading
- There are long positions7.58% higher than yesterday and 14.27% lower than last week
- Short positions are 15.62% lower than yesterday and 18.13% higher 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 more than yesterday, but less than last week. The combination of current positioning and recent changes gives us an even more mixed USD / CAD trading bias a feeling position.
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– Written Michael Boutros, Technical Currency Strategist with DailyFX
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