USD/CAD Technical Highlights:
USD/CAD operating into 200-day, trend-line resistanceWatch how worth motion performs out on this space
The Canadian Greenback continues to take successful in opposition to the US Greenback after USD/CAD very almost skilled a serious long-term support-break on the finish of October. As a substitute of a break, although, we are actually taking a look at a take a look at of significant intermediate-term resistance. The value of USD/CAD got here simply shy of the 200-day and Might trend-line combo in yesterday’s session.
The confluent resistance is seen as vital for a way issues unfold within the near-term. To date there has solely been a minor response just under the realm in query, so seeing a powerful push into or above resistance ranges after which failing with power can be splendid to see simply how significant the value zone is. Or, a breakout by way of with out hesitation.
Within the occasion of a powerful response decrease, then a pullback as a minimum, if not a transfer again in the direction of the October low at 10342 or worse. The low from final month could also be about so far as issues get, although, earlier than one other restoration takes form. It’s been that form of see-saw, low-vol buying and selling surroundings. To show issues essential, USD/CAD might want to shut under 13000 on a weekly foundation.
On the flip-side, a rally by way of the 200-day/trend-line combo gained’t get USD/CAD into open area simply but, however may very well be the beginnings of one thing bigger. The world from 13330 as much as 13382 will likely be a tricky spot to get by way of. To show the macro outlook bullish, a sustained break into the 13400s seems to be to be wanted.
For now, short-term merchants can use the mentioned crossroad simply forward on the day by day chart to assist form their broader buying and selling bias, together with the Four-hr chart for near-term development cues. The trend-line rising up from late final month is protecting the upward bias intact for now (may additionally find yourself a part of a developed rising wedge breakout).
Buying and selling Forecasts and Instructional Guides for merchants of all expertise ranges could be discovered on the DailyFX Buying and selling Guides web page.
USD/CAD Day by day Chart (confluent resistance)
USD/CAD Charts by TradingView
USD/CAD Four-hr Chart (watch rising trend-line)
***Updates will likely be supplied on the above ideas and others within the buying and selling/technical outlook webinars held at 1030 GMT on Tuesday and Friday. In case you are on the lookout for concepts and suggestions on methods to enhance your general method to buying and selling, be a part of me on Thursday every week for the Turning into a Higher Dealer webinar collection.
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—Written by Paul Robinson, Market Analyst
You may comply with Paul on Twitter at @PaulRobinsonFX