USD/CAD Approaching Initial Support Targets Ahead of Retail Sales
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USD/CAD Approaching Initial Support Targets Ahead of Retail Sales

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Talking Points

  • USD/CAD approaching initial support- Shorts at risk above yearly open
  • Updated targets & invalidation levels
  • Compete to Win Cash Prizes with FXCM's Fo r ex Trading Contest

USDCAD 30min

Chart Created Using FXCM Marketscope 2.0

Technical Outlook: We've been tacking this USDCAD setup on SB Trade Desk for the past few weeks with the decline now approaching more significant technical support targets. Heading into the release of Canada retail sales tomorrow, look for initial support 1.2749/55 backed by the 2016 low-day close at 1.2722 . A break sub- 1.2990 would be needed to keep the short-bias in play.

From a trading standpoint, I would be looking for an exhaustion low / long-entries on a move into these targets with topside resistance objectives eyed at 1.2818 , 1.2885 , 1.2923 and 1.2961/65 - a region defined by the 6/16 high-day close & the 61.8% retracement. Keep in mind we also have the second day of the Fed's semi-annual Humphrey Hawkins testimony before congress which could spur added volatility in the USD crosses. Continue tracking this setup and more throughout the week- Subscribe to SB Trade Desk and take advantage of the DailyFX New Subscriber Discount.

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  • A summary of the DailyFX Speculative Sentiment Inde x (SSI) shows traders are net long AUDUSD- the ratio stands at +1.23 (55 % of traders are long ) - weak bearish reading
  • Yesterday the ratio was +1.18 ; Long positions are 2.6% higher than yesterday and 4 % below levels seen last week
  • Traders have flipped from net long to net short twice already this month- Extreme of 1.613 registered the day after the low on 6/8.
  • Open interest is 0.4% higher than yesterday and 4.7% below its monthly average. Although SSI metrics put a bearish tone on the pair, the pair is coming into key technical support targets at the monthly & yearly low-day closes - leaves the short-side vulnerable while above these levels

Help fine-tune you entries, click here to lear n more about the DailyFX Grid Sight Index (GSI)

Relevant Data Releases This Week

Other Setups in Play:

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---Written by Michael Boutros, Currency Strategist with DailyFX

Follow Michael on Twitter @MBForex contact him at mboutros@dailyfx.com or Clic k H ere to be added to his email distribution list

J oin Michael for Live Scalping Webinar s on Mondays on DailyFX and Tuesday, Wednesday & Thursday's on SB Trade Desk at 1 2:30 GMT ( 8 :30ET)

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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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