- A look at the weekly technicals as the USD/CAD presses fresh yearly highs
- Check o ut our 2018 USD projections in our Free DailyFX Trading Forecasts
- Join Michael for Live Weekly Strategy Webinar s on Mondays at 12:30GMT
In this series we scale-back and take a look at the broader technical picture to gain a bit more perspective on where we are in trend. The Canadian Dollar has been under tremendous pressure since the start of the year with USD/CAD rallying more than 8% off the yearly lows. The advance has taken price through multi-year slope resistance and keeps broader focus weighted to the topside. Here are the key levels that matter on the USD/CAD weekly chart. Review this week's Strategy Webinar for an in-depth breakdown of this setup and more.
New to Forex Trading ? Get started with this Free Beginners Guide
USD/CAD Weekly Price Chart
Notes: USD/CAD broke through the upper parallel of a descending pitchfork formation extending off the 2016 highs last week with price closing above a confluence Fibonacci zone at 1.3103/32 . The pair is attempting to breach 2017 channel resistance this week with such a scenario targeting subsequent topside objectives eyed at 1.3423 . Interim support rest back at 1.31 with broader bullish invalidation down at the trendline confluence around ~ 1.2980 s.
For a complete breakdown of Michael's trading strategy, review his Foundations of Technical Analysis series on B uilding a T rading S trategy
Bottom line: IF this breakout has legs, look for entries on a pullback towards 1.3103/32 . A weekly close above the near-term slope (purple) would be needed to keep the focus higher targeting 1.3423 backed by more significant resistance at the 2017 high-week close / 61.8% retracement (of the 2016 decline) at 1.3647/85 .
Even the most seasoned traders need a reminder every now and then- Avoid these Mistakes in your trading
USD/CAD IG Trader Sentiment
- A summary of IG Client Sentiment shows traders are net-short USD/CAD- the ratio stands at -2.42 (29.3% of traders are long) - bullish reading
- T raders have remained net-short since May 22 nd ; price has moved 3.0% higher since then
- Long positions are 2.2% higher than yesterday and 11.3% lower from last week
- Short positions are 8.0% higher than yesterday and 26.4% higher from last week
- We typically take a contrarian view to crowd sentiment, and the fact traders are net-short suggests USD / CAD prices may continue to rise. Traders are further net-short than yesterday and last week, and the combination of current positioning and recent changes gives us a stronger USD / CAD-bullish contrarian trading bias from a sentiment standpoint.
See how shifts in USD/CAD retail positioning are impacting trend- Le arn more about sentiment!
Relevant USD/CAD Data Releases
Economic Calendar - for the l atest e conomic d evelopments and u pcoming event ri sk
Previous Weekly Technical Perspectives
- Weekly Technical Perspective on the US Dollar (DXY)
- Weekly Technical Perspective on the Aussie (AUD/USD)
- Weekly Technical Perspective on the Euro (EUR/USD)
- Weekly Technical Perspective on AUD/JPY
--- Written by Michael Boutros , Technical Currency Strategist with DailyFX
Follow Michael on Twitter @MBForex or contact him at email@example.com
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
Learn forex trading with a free practice account and trading charts from IG .