USD/CAD Virus Breakout could also be Overdone

Canadian Greenback Technical Worth Outlook: Close to-term Commerce Ranges

• Canadian Greenback up to date technical commerce ranges – Each day & Intraday Charts
• USD/CAD 2020 rally testing multi-year uptrend resistance
• Rally susceptible near-term- commerce stays constructive whereas above 1.4014.

The Canadian Greenback stays on the defensive in opposition to the US Greenback early within the week however takes USD/CAD right into a key technical resistance zone we’ve been monitoring for a while. Whereas the broader outlook stays weighted to the topside, the rapid advance could also be susceptible IF value is unable to mount an in depth above this threshold. These are the up to date targets and invalidation ranges that matter on the USD/CAD value charts heading into Jobs Friday. Assessment my newest Weekly Technique Webinar for an in-depth breakdown of this Loonie commerce setup and extra.

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Canadian Greenback Worth Chart – USD/CAD Each day

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

Technical Outlook: In my final Canadian Greenback Worth Outlook we famous that USD/CAD was testing, “uptrend resistance (threat for near-term exhaustion) with a breach / weekly shut above 1.4565 wanted to gasoline the subsequent leg greater in value.” Worth briefly registered a excessive at 1.4667 final week however did not mark a every day shut above confluence resistance on the 61.8% parallel (blue) / 2016 high-close / 100% ext at 1.4534/65. Word that every day RSI is deep in overbought territory and whereas momentum is on the aspect of the bulls, the value advance could also be susceptible near-term whereas beneath this threshold.

Canadian Greenback Worth Chart – USD/CAD 120min

Notes: A more in-depth have a look at Loonie value motion exhibits USD/CAD failing final week on constructing divergence into the highs earlier than pulling again. Worth is as soon as once more testing this resistance zone into the beginning of the week- search for a response right here. An in depth above exposes the 2016 excessive at 1.4690 backed by the higher parallel of the ascending pitchfork formation extending off the 2016/2017 lows, at the moment round 1.4930s.

Weekly open help rests at 1.4352 backed by the 2016 high-week shut at 1.4115. Finally a break / shut beneath the 38.2% retracement at 1.4014 could be wanted to recommend a bigger correction is underway with such a state of affairs exposing 1.3793-1.3812 and the 61.8% retracement / 20178 high-day shut at 1.3610/47 – each areas of curiosity for attainable draw back exhaustion IF reached.

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Backside line: The USD/CAD rally is testing lateral resistance right here at 1.4534/65 and the rapid advance could also be susceptible IF value holds this threshold into the shut. Type a buying and selling standpoint, a great spot to cut back long-exposure / increase protecting stops. The weekly opening-rangeis taking form just under resistance – look to the break for steering right here. Finally, a bigger pullback might supply extra favorable entries with a breach greater exposing longer-term slope resistance above the 1.49-handle. Assessment my newest Canadian Greenback Weekly Worth Outlook for a better have a look at the longer-term USD/CAD technical commerce ranges.

For a whole breakdown of Michael’s buying and selling technique, evaluation his Foundations of Technical Evaluation collection on Building a Trading Strategy

Canadian Greenback Dealer Sentiment – USD/CAD Worth Chart

• A abstract of IG Shopper Sentiment exhibits merchants are net-short USD/CAD – the ratio stands at –2.69 (27.06% of merchants are lengthy) – bullish studying
• Lengthy positions are42.74% greater than yesterday and 22.92% greater from final week
• Brief positions are29.27% greater than yesterday and three.02% greater from final week
• We sometimes take a contrarian view to crowd sentiment, and the actual fact merchants are net-short suggests USD/CAD costs might proceed to rise. But merchants are much less net-short than yesterday and in contrast with final week and the current modifications in sentiment warn that the present USD/CAD value development might quickly reverse decrease, regardless of the actual fact merchants stay net-short.

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Key US / Canada Information Releases

Financial Calendar – newest financial developments and upcoming occasion threat.

Energetic Commerce Setups

– Written by Michael Boutros, Foreign money Strategist with DailyFX

Observe Michael on Twitter @MBForex