Jump to content

USD/CAD Technical Outlook: Trending Towards Big Support


Recommended Posts

USD/CAD TECHNICAL OUTLOOK

  • USD/CAD weakness has been extremely persistent, but nearing reversal spot
  • The area between 12458 and 12402 could get tested this week
Canadian Dollar Technical Outlook: USD/CAD Backs into Uptrend Support

USD/CAD TECHNICAL OUTLOOK: TRENDING TOWARDS BIG SUPPORT

USD/CAD weakness has been persistent since reversing from over 13000. The price action has been consistent with what we have seen for quite some time out of CAD – strong one-way moves and reverse. With that in mind, a test of big support below could lead to another reversal trade.

There is big support from around 12458 down to 12402. This area dates to January when there was a double bottom that led to an extended rally. The January lows were later tested in March and April with price jetting through the double bottom and reversing.

The reversals below the previous yearly low then led to the big move over 13000. But not until after the January double bottom was again tested in April. All of this testing and powerful reversal price action is making for a very strong zone of support.

A push down into support and punchy price action could again lead to a run back to the upside. First up is 12458 and if that doesn’t hold then look for the 12402 level to hold. Ideally, the test of support plays out as it has before where we see a temporary breaking of support followed by a daily close back above.

In the event we see another round of price action like this it could lead to a long opportunity. In the event we see momentum carry price through support then that will be off the table. If we do see support break, though, fresh shorts won’t hold any appeal as the trend will be quite extended. The next level to watch on a break of support will be 12307, a low from last year and the trend-line rising up from 2015.

If we see any strength in the interim before reaching the aforementioned support levels, watch the 200-day at 12658 as resistance as we did see a bit of a hesitation there last week suggesting it is currently influential as a meaningful level.

 

USD/CAD DAILY CHART

usd/cad daily chart

USD/CAD Chart by TradingView

Resources for Forex Traders

Whether you are a new or experienced trader, we have several resources available to help you; indicator for tracking trader sentiment, quarterly trading forecasts, analytical and educational webinars held daily, trading guides to help you improve trading performance, and one specifically for those who are new to forex.

---Written by Paul Robinson, Market Analyst. 6th June 2022 | DailyFX

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • image.png

  • Posts

    • Ready to Fight represents the first real attempt at bringing the global boxing community of over 50 million athletes, promoters, trainers, managers, and diehard fans into the world of decentralized social media and finance (SocialFi). It was founded by none other than heavyweight boxing superstar Oleksandr Usyk and blockchain entrepreneur Sergey Lapin. The native RTF token acts as the lifeblood of this intricately designed web3 social network. Stake RTF to access premium content and services. Use it to directly sponsor fighters you support or pay trainers for their time. Spend RTF on limited-edition boxing gear or merchandise drops. Thanks to the RTF listing on Bitget, crypto enthusiasts and boxing fans alike can now invest in and drive the rapidly expanding ecosystem. The low initial circulating supply and market cap suggests a massive upside for this first-of-its-kind SocialFi platform serving the boxing world.
    • Pepe Coin's surge, driven by significant whale accumulation, has propelled it to the third-largest meme coin position. With strategic buying, the investor has already seen substantial profits, sparking bullish sentiment in the broader meme coin sector.
    • Rallies in FTSE 100, DAX 40 and Dow have further to go Outlook on FTSE 100, DAX 40 and Dow as investors pile back in to global stock markets. Source: Getty Images Written by: Axel Rudolph FSTA | Senior Financial Analyst, London   Publication date: Wednesday 24 April 2024 13:48 FTSE 100 hits yet another record high A weaker pound sterling and foreign investor buying of the undervalued UK blue chip index propelled the FTSE 100 to a record high on Monday. The pound sterling bouncing back following hawkish comments by BoE chief economist Huw Pill has not put a spanner in the works with the FTSE 100 hitting yet another record high and remaining on track for its fourth straight day of gains. Minor support sits between the early-to-mid-April highs at 8,046 to 8,017. Medium-term the 161.8% Fibonacci extension of the March-to-June 2020 advance, projected higher from the October 2020 low, around the 8300 mark represents a possible upside target. Source: ProRealTime DAX 40 regains lost ground The DAX 40’s strong rally off last week’s 17,400 low has gained traction and is trying to overcome last week’s high at 18,195. If overcome on a daily chart closing basis, the 8 April high at 18,329 will be in focus, together with the 4 April high at 18,429. Minor support can be spotted around the 5 April low at 18,085 and around the psychological 18,000 level. Source: ProRealTime Dow sees strong three straight day rally Since last week the Dow Jones Industrial Average regained lost ground and has risen by around 3% with the 55-day simple moving average (SMA) at 38,783 representing the next upside target, together with the 10 April high at 39,029. Potential slips may find support around the 38,452 March low and further down, around the late February 38,336 low. Source: ProRealTime
×
×
  • Create New...
us