USD/CAD Weekly Price Chart
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Weekly Technical Perspective on the Canadian Dollar (USD/CAD)

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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.

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USD/CAD Weekly Price Chart

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.

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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 .

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USD/CAD IG Trader Sentiment

USD/CAD 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

USD/CAD Economic Calendar

Economic Calendar - for the l atest e conomic d evelopments and u pcoming event ri sk

Previous Weekly Technical Perspectives

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

Follow Michael on Twitter @MBForex or contact him at mboutros@dailyfx.com

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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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