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 development. The US Dollar has rallied to contemporary yearly highs in opposition to the Canadian Dollar with and weekly shut above near-term resistance is required to maintain the long-bias viable. Here are the important thing targets & invalidation ranges that matter on the USD/CAD weekly chart heading into the shut of the yr.
USD/CAD Weekly Value Chart
Notes: USD/CAD is buying and selling right into a key resistance zone at 1.3375-1.3435– a area outlined by the 50% retracement of the 2016 decline, the June swing highs and the 2017 yearly open. A breach / weekly shut above this threshold is required to maintain the fast long-bias viable with such a state of affairs concentrating on key confluence resistance at 1.3628/86 the place the 61.8% retracement and the 1.618% extension converge on the 2017 high-week shut. Key help rests at 1.3100/30 with a break under the 2012 trendline / 200-week transferring common round ~1.30 wanted to invalidate the long-bias.
For an entire breakdown of Michael’s buying and selling technique, overview his Foundations of Technical Analysis series on Building a Trading Strategy
Backside line:The advance is weak near-term whereas under 1.3435. From a buying and selling standpoint, a very good place to cut back long-exposure / increase protecting stops. For now, our focus shall be on the weekly shut. I’ll publish an up to date USD/CAD scalp report as soon as we get additional readability on near-term worth 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 -4.69 (17.6% of merchants are lengthy) – bullish studying.
- Traders have remained net-short since October 9th; worth has moved 4.7% increased since then
- Lengthy positions are 6.3% decrease than yesterday and 33.5% decrease from final week
- Quick positions are 25.9% increased than yesterday and 59.6% increased from final week
- We usually take a contrarian view to crowd sentiment, and the actual fact merchants are net-short suggests USD/CAD costs might proceed to rise. Merchants are additional net-short than yesterday & final week, and the mixture of present sentiment and up to date adjustments offers us a stronger USD/CAD-bullish contrarian buying and selling bias.
See how shifts in USD/CAD retail positioning are impacting trend- Learn more about sentiment!
Related USD/CAD Knowledge Releases
Earlier Weekly Technical Charts
— Written by Michael Boutros, Technical Forex Strategist with DailyFX