USD/CAD DAILY PRICE CHART
Technical Outlook: USD/CAD broke below the monthly opening-range lows on January 24th with the decline taking price to fresh four-month lows into the start of February trade. Daily support rests just lower at 1.2244 where the 78.6% retracement of the September advance converges on 2017 slope support.
A break below this confluence region would be needed to keep the short-bias in play with such a scenario targeting subsequent support objectives at the 2017 low-day close at 1.2156 and the 2017 low / Fibonacci confluence at 1.2025/56. Daily resistance is eyed at the 1.2388-1.2416 range with broader bearish invalidation up at 1.2581/97 – a region defined by the monthly open, the yearly opening-range high and the 100-day moving average.)
USD/CAD 240MIN PRICE CHART
Notes: A closer look at price action sees Loonie trading within the confines of a well-defined descending channel formation extending off the January highs with the upper parallel further highlighting resistance at 1.2388. The immediate focus is on a break of the 1.2241-1.2388 range to offer near-term guidance.
Bottom line: Although the broader outlook remains weighted to the downside, the immediate decline is vulnerable while above 1.2241. From a trading standpoint I’ll favor fading strength while within this formation with a break below channel support likely to fuel accelerated losses towards subsequent support objectives at 1.2025/56. Keep in mind we get the release of U.S. NFPs (Non-Farm Payrolls) tomorrow with the event likely to fuel increased volatility in the USD crosses.
USD/CAD IG CLIENT SENTIMENT
Related Posts
Not Wages. Not Inflation. Volatility. ETFs
How They Sell Inflation
Yes, Tax Cuts Really Are The Reason For Your Raise
Total Chaos – Stocks Surge On Biggest Short Squeeze In A Year As Dollar Crashes
EURGBP Remains Vulnerable Short Term But With Caution
Which States Have The Highest Cost Of Living? Lowest?
Leave A Comment