Canadian Greenback Value Targets: USD/CAD Bulls Eye Key Resistance Pivot

The Canadian Greenback is down greater than 2.four% towards the US Greenback because the July lows in USD/CAD with value now approaching a key inflection zone simply greater. These are the up to date targets and invalidation ranges that matter on the USD/CAD charts this week. Evaluate this week’s Technique Webinar for an in-depth breakdown of this silver value setup and extra.

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Loonie Value Chart – USD/CAD Day by day

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

Technical Outlook: In my final USD/CAD Weekly Commerce Outlook we famous that value was approaching a key resistance zone, “at the 61.eight% retracement of the Could decline / 2019 high-week shut at 1.3355/70 backed by the trendline confluence round ~1.3430s- a weekly shut above this stage can be wanted to counsel a bigger value reversal is underway.” USD/CAD has failed simply forward of this threshold early within the month with value buying and selling in a near-term consolidation simply below- notice the constructing divergence / pending assist set off on the day by day momentum profile.

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Loonie Value Chart – USD/CAD 240min

Canadian Dollar Price Targets: USD/CAD Bulls Eye Key Resistance Pivot

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

Notes: A better take a look at Loonie value motion sees USD/CAD buying and selling inside the confines of an ascending pitchfork formation extending off the July lows with the upslope additional highlighting the 1.3338/55 resistance zone – searching for a pivot off this zone.

A topside breach / shut above exposes the 75% parallel (presently ~1.3390s) backed by the 2017 open / 61.eight% retracement at1.3435/37 – anticipate a bigger response there IF reached. Weekly open assist rests at 1.3270 backed by the sliding parallel simply decrease – weak point past this threshold would counsel a extra vital near-term excessive is in place / a extra vital correction is underway with such a situation concentrating on the month-to-month open at 1.3191.

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Backside line: USD/CAD is concentrating on uptrend resistance simply greater and we’re searching for a response on a stretch into 1.3338/55. From a buying and selling standpoint, a superb stage to scale back long-exposure / elevate protecting stops. Value is poised to mark an outside-day reversal into the highs if value continues course – typically a warning signal of doable near-term exhaustion. In the end a topside breach / shut above can be wanted to mark resumption of the broader uptrend.

Loonie Dealer Sentiment – USD/CAD Value Chart

Loonie Trader Sentiment - US Dollar vs Canadian Dollar Price ChartA abstract of IG Consumer Sentiment exhibits merchants are net-short USD/CAD – the ratio stands at -1.6 (38.four% of merchants are lengthy) – bullish studyingTraders have remained net-short since July 23rd; value has moved greater since thenLengthy positions are 21.2% greater than yesterday and 5.four% decrease from final weekQuick positions are eight.2% decrease than yesterday and 5.9% greater from final weekWe sometimes take a contrarian view to crowd sentiment, and the very fact merchants are net-short suggests USD/CAD costs could proceed to rise. Butmerchants are much less net-short than yesterday however extra net-short from final week and the mixture of present positioning and up to date adjustments offers us an additional blended USD/CAD buying and selling bias from a sentiment standpoint.

See how shifts in Silver retail positioning are impacting trend- Study extra about sentiment!

Key US / Canada Information Releases

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– Written by Michael Boutros, Forex Strategist with DailyFX

Observe Michael on Twitter @MBForex

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