Canadian Dollar Technical Price Outlook: USD/CAD Weekly Trade Levels
- updated technical trade levels – Weekly Chart
- sell-off fails at critical support – bears vulnerable into March open
- Resistance / bearish invalidation at 1.2975 – Critical support steady at 1.2579-1.2619
The rally seemingly lost steam against the last week with rebounding sharply off key technical support into the close of February trade. The rally covered nearly 70% of the year-to-date range in just two days with the reversal threatening a larger recovery in the weeks ahead. These are the updated targets and invalidation levels that matter on the / weekly technical price. for an in-depth breakdown of this Loonie technical setup and more.
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Canadian Dollar Price Chart – USD/CAD Weekly
Chart Prepared by , Technical Strategist;
Notes: In last month’s we noted that the /CAD was trading, “just above key technical support at 1.2579-1.2619,” – a region defined by the 2018 yearly open and the 78.6% retracement of 2017 advance. An intra-week drop registered a low at 1.2468 / channel support before rebounding sharply, nearly posting an outside-week reversal to close back above this key support zone. Is a low in place?
Initial weekly stands at the median-line (currently ~1.2770s) backed by the yearly high at 1.2881. Ultimately a breach / weekly close above the 2020 yearly open at 1.2975 would be needed to suggest a more significant trend reversal is underway- look for a larger price inflection there IF reached. A close below 1.2579 is still needed to mark resumption of the broader downtrend with subsequent objectives unchanged at the 2018 low-week close at 1.2421 and the 88.6% retracement at 1.2385.
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Bottom line: The Canadian Dollar has failed a break below a critical support confluence we’ve been tracking for months now and leaves the bears vulnerable while above. From a trading standpoint, look for downside exhaustion ahead of 1.2579 IF price is indeed heading higher with a breach above the median-line needed to keep the focus on broader downtrend resistance. Stay nimble as we head into the March opening-range. Review my latest for a closer look at the near-term USD/CAD technical trade levels.
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Canadian Dollar Trader Sentiment – USD/CAD Price Chart
- A summary of shows traders are net-long – the ratio stands at +1.31 (56.77% of traders are long) – typically bearish reading
- Long positions are 14.67% higher than yesterday and 33.02% lower from last week
- Short positions are68.53% higher than yesterday and 52.53% higher from last week
- We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests USD/CAD prices may continue to fall. Yet traders are less net-long than yesterday and compared with last week. Recent changes in warn that the current USD/CAD price trend may soon reverse higher despite the fact traders remain net-long.
of clients are net long.
of clients are net short.
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— Written by , Technical Currency Strategist with DailyFX
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