Canadian Greenback Worth Chart: Loonie Drives USD/CAD to Weekly Assist

The Canadian Greenback is up greater than four% in opposition to the US Greenback because the Might highs in USD/CAD with the latest sell-off in value taking Loonie into important pivot zone. These are the up to date targets and invalidation ranges that matter on the Loonie (USD/CAD) weekly value chart. Evaluate my newestWeekly Technique Webinar for an in-depth breakdown of this gold value setup and extra.

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USD/CAD Worth Chart – Loonie Weekly

Notes: In my final Loonie Weekly Worth Outlook we highlighted that, “The main target stays on a drop in the direction of key assist at 1.3052/68 on the again of final week’s reversal. From a buying and selling standpoint, look to scale back short-exposure / decrease protecting stops on a transfer in the direction of the yearly vary lows- search for a response there.” The 100% extension of the December decline extends the vary to 1.2972-1.3052 and USD/CAD has been testing this assist zone for the previous three weeks.

Notice that the 2017 trendline rests simply decrease and a break / shut beneath this threshold is required to validate a break of the yearly opening-range with such a state of affairs concentrating on 1.2782 and the 61.eight% retracement at 1.2674. Weekly resistance stands at 1.3274 with broader bearish invalidation on the yearly high-week reversal shut at 1.3371.

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Backside line: The rapid focus is on a response of this key zone at 1.2972-1.3052 – watch the weekly shut. From a buying and selling standpoint, look to scale back short-exposure / decrease protecting stops on this zone. IF this can be a break of the yearly range-low and value is certainly heading decrease, intra-week spikes must be capped by 1.3274. I’ll publish an up to date Loonie Worth Outlook as soon as we get additional readability in near-term USD/CAD value motion.

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Loonie Dealer Sentiment (USD/CAD)

Loonie Trader Sentiment - US Dollar vs Canadian Dollar Price Chart - USD/CAD Technical Outlook A abstract of IG Consumer Sentiment reveals merchants are net-long USD/CAD – the ratio stands at +1.5 ( of merchants are lengthy) – bearish studying Traders have remained net-long since June 26th; value has moved decrease since then Lengthy positions are zero.9% larger than yesterday and 12.6% decrease from final week Brief positions are 10.5% decrease than yesterday and 12.three% larger from final week We sometimes take a contrarian view to crowd sentiment, and the very fact merchants are net-long suggests USD/CAD costs could proceed to fall. Merchants are additional net-long than yesterday & final week, and the mixture of present positioning and up to date adjustments provides us a stronger USD/CAD-bearish contrarian buying and selling bias from a sentiment standpoint.

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— Written by Michael Boutros, Technical Forex Strategist with DailyFX

Observe Michael on Twitter @MBForex

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