CANADIAN DOLLAR PRICE CHART OUTLOOK HINTS AT LOONIE UPSIDE
USDCAD technicals may very well be pointing to a reversal decrease if the forex pair’s prevailing uptrend fails to carryThe Canadian Greenback appears oversold and has potential to rebound Occupied with turning into a forex dealer? Try this free Foreign exchange for Newcomers instructional information
Spot USDCAD has been in a gradual uptrend since mid-July, however current bullish development may very well be coming underneath strain. The Canadian Greenback has edged decrease in opposition to its USD counterpart in an obvious retracement of June’s sizable slide to the draw back, however worth motion appears to be displaying indicators of shedding steam. The restoration in spot USDCAD off its July low was initially thwarted across the 1.3355 space as costs approached the 61.eight% Fibonacci retracement degree of its final bearish leg recorded all through June.
USDCAD PRICE CHART: DAILY TIME FRAME (MAY 14, 2019 TO AUGUST 26, 2019)
Wanting on the each day candlesticks, we are able to see sellers stepping in round this worth degree up to now this month indicated by the lengthy higher wicks. That stated, USDCAD is presently buying and selling across the 1.3280 mark and is testing bullish trendline assist prolonged from the sequence of higher-lows since July 18. If this overarching uptrend fails to maintain spot USDCAD bid, the Canadian Greenback might quickly reverse and drive the forex pair again decrease.
Spot USDCAD technical resistance can be posed by the adverse sloping 50-day easy transferring common which threatens to weigh closely on worth motion. Additionally, promoting strain turns into extra evident with the most recent drop in spot USDCAD beneath its mid-point retracement degree. The potential of spot USDCAD reversing decrease can be hinted at by the most recent MACD crossover and ebbing RSI. If spot USDCAD confirms a break beneath the aforementioned uptrend line, a possible draw back goal might eye the 38.2% Fibonacci retracement degree and confluent assist across the 1.3200 deal with.
USDCAD – IG CLIENT SENTIMENT INDEX PRICE CHART: DAILY TIME FRAME (FEBRUARY 27, 2019 TO AUGUST 26, 2019)
Based on IG Consumer Sentiment knowledge, 36.eight% of spot USDCAD retail merchants are net-long leading to a long-to-short ratio of -1.72 to 1. The variety of merchants net-long is 14.four% larger than yesterday whereas the variety of merchants net-short is zero.7% decrease. Though we typically maintain a contrarian view relating to crowd sentiment, the current adjustments in spot USDCAD positioning might recommend that the forex pair’s worth pattern could quickly reverse decrease.
— Written by Wealthy Dvorak, Junior Analyst for DailyFX.com
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