Technical price outlook for the Canadian dollar: near – term trade levels
- Canadian dollar updated levels of technical trade – daily and intraday charts
- USD / CAD falls through the monthly range / basic support – in 2021 the view is low
- Basic support for 1.2358 – resistance / in the near future bear repeal
The Canadian dollar has collected more than 1.24% US dollar this month with a break below the April opening period USD/ CAD back to the lowest level of the year. Although the distribution keeps the broader focus lower, the downturn may be vulnerable in the coming days as price approaches support FOMC interest rate decision as early as tomorrow. These are updated targets and cancellation levels USD/CAD price charts. Overview my last Strategy webinarfor its thorough distribution Loonie technical setup and more.
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Canadian Dollar Price Chart – USD / CAD per day
Technical outlook: Mine the last Canadian dollar price outlook we noted thaton a breakthrough where risk has expanded to less than 1.26… ”Loonie marked a huge off-day change in interest rates at the Bank of Canada, with USD / CAD covering the entire month range of this session. Break from April below opening area / key support yesterday at 1.2468 / 85 sold almost 0.7% of sales, the decline of which is now a year lower.
Initial support rests in March 2020 trend line (blue) supported by low annual levels / 88.6% Fibonacci Withdrawal of the 2017 advance at 1.2358/ 65– a break / closure below this threshold would be needed to keep the immediate decline viable near the low day of 2018 1.2312 and the lowest in 2018 1.2247.
Canadian dollar price chart – USD / CAD 240min
Notes: A closer look at the Loonie pricing operation shows that the USD / CAD breaks below the merger rate into a weekly open clock 1.2473-85– an area defined by a 61.8% return to the March Rally, an objective year-end low day closing and a 100% prolongation of the decline at the end of March. This zone also determines this week’s opening heights and as such is our near future bear Level of invalidity – violation / closure above it rexistence threshold would threaten greater return / recovery 1.26– handle again.
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Bottom line: USD / CAD has exceeded the minimum level of accession support / monthly opening and will keep the focus at the end of the month. This means that the decline has already prolonged from a monthly peak of more than 2% in just four days, with the price already approaching the original support target. From a trade perspective, look at how to reduce short-term exposure / lower protection stops to lower levels each year – recoveries should be limited to 1.2485 if the price really goes lower and is necessary to keep the short-term viability. Check out my latest review Canadian Dollar Weekly Outlook for a closer look at the longer-term level of USD / CAD technical trade.
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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 +3.37 (77.14% of traders are long) – usually bear reading
- There are long positions21.49% higher than yesterday and 32.24% higher than last week
- Short positions are 16.89% lower than yesterday and 28.07% lower than last week
- We usually take a contradictory view of the crowd and suggest the fact that traders are online USD / CAD prices may continue to fall. 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.
customers are network long.
customers are net short.
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– Written Michael Boutros, DailyFX currency strategist
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