On this collection we scale-back and have a look at the broader technical image to realize a bit extra perspective on the place we’re in pattern. The Canadian Dollar is down 0.65% towards the US Dollar from final week’s excessive with value persevering with to consolidate round a key technical confluence at 1.3435. These are the up to date targets and invalidation ranges that matter on the USD/CAD weekly value chart. Review this week’s Strategy Webinar for an in-depth breakdown of this setup and extra.
USD/CAD Weekly Worth Chart
Notes: USD/CAD has continued to straddle the 2017 open / 61.8% retracement of the late-2018 decline at 1.3435/37 with the month-to-month opening-range nonetheless intact heading into the beginning of the week. Momentum indicators have flat-lined with value persevering with to coil round this zone.
Key assist rests with the April lows and converges on a pair of trendlines round 1.3274– a break beneath this zone would counsel a bigger correction is underway concentrating on 1.3052/99– search for a much bigger response there IF reached. A break of the month-to-month rang-highs would maintain the main target again on 1.3647/86–ta area outlined by the 2017-high-week shut, 61.8% retracement of the 2016 decline and the 2018 excessive.
For a whole breakdown of Michael’s buying and selling technique, assessment his Foundations of Technical Analysis series on Building a Trading Strategy
Backside line: The quick focus is on a breakout of the Could vary between 1.3377 – 1.3505 for steering. From a buying and selling standpoint, the near-term danger is weighted to the draw back after Friday’s reversal however preliminary monthly-open assist rests simply decrease at 1.3388. I’ll publish an up to date USD/CAD Price Outlook as soon as we get additional readability in near-term value motion.
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USD/CAD Dealer Sentiment
- A abstract of IG Client Sentiment exhibits merchants are net-short USD/CAD – the ratio stands at -1.52 (39.7% of merchants are lengthy) – weak bullish studying
- Traders have remained net-short since Could 1st; value has moved 0.1% decrease since then
- Lengthy positions are 42.6% greater than yesterday and 21.0% greater from final week
- Quick positions are 13.8% decrease than yesterday and 18.6% decrease from final week
- We sometimes take a contrarian view to crowd sentiment, and the actual fact merchants are net-short suggests USD/CAD prices could proceed to rise. But merchants are much less net-short than yesterday and in contrast with final week. Current adjustments in sentiment warn that the present USD/CAD value pattern could quickly reverse decrease regardless of the actual fact merchants stay net-short.
See how shifts in USD/CAD retail positioning are impacting trend- Learn more about sentiment!
Earlier Weekly Technical Charts
— Written by Michael Boutros, Technical Foreign money Strategist with DailyFX
Observe Michael on Twitter @MBForex