USD/CAD Constructive Above 1.3070 Ahead of Canada Retail Sales

Talking Points

  • USD/CAD trade stays constructive above 1.3070
  • Updated targets cancellation levels
  • Looking for some-more trade ideas? Review DailyFX’s 2017 Trading Guides. Join Michael for Live Weekly Trading Webinars on Mondays at 13:30GMT (8:30ET)


USDCAD Daily Chart

Technical Outlook: USDCAD responded nonetheless again to a Jun trendline support final week (5th time) with a miscarry now eyeing near-term insurgency targets. This trendline converges on a 2/16 reversal-day tighten during 1.3071 and keeps a near-term concentration aloft while above this connection region. Key near-term insurgency is seen only aloft into a 1.32-handle.

USD/CAD 120min

USDCAD 120min Chart

Technical Outlook: A closer look during cost movement has a span trade within a proportions of a near-term descending pitchfork arrangement with a reduce together highlighting support during 1.3074- this segment also converges on a weekly opening-range low former trendline insurgency fluctuating off a Dec high and will offer as a near-term bullish cancellation level. Initial support is eyed during a weekly open during 1.3095.

Interim insurgency now being tested during a 61.8% prolongation of a allege off a lows during 1.3160 with a crack here targeting topside objectives during 1.3209 a 61.8% retracement during 1.3227. Watch wanton here as prices exam vicious insurgency with a convene exposed sub-55. From a trade standpoint, I’ll preference vanishing debility while above a reduce together targeting a median-line. Keep in mind we have Canada sell sales information on daub tomorrow morning and is expected to fuel combined sensitivity in a CAD crosses.


  • A outline of a DailyFX Speculative Sentiment Index (SSI) shows traders are net-long USDCAD- a ratio stands during +1.29 (56% of traders are long)- diseased bearish reading
  • Long positions are 2.5% reduce than yesterday and 18.5% next levels seen final week
  • Short positions are 6.8% aloft than yesterday and 12.0% above levels seen final week
  • Open seductiveness is 1.3% aloft than yesterday though still 3.8% next a monthly normal
  • While a stream SSI form continues to indicate lower, it’s value observant that a new squeezing in a ratio (increase in brief bearing / diminution in prolonged positioning) on building open seductiveness shows a sell throng attempting to blur this convene and serve prominence a risk for a pull higher. Look for this energetic to mature in a entrance days with a flip to net-short indispensable to advise that a some-more suggestive low is in place.

Relevant Data Releases

USD/CAD Constructive Above 1.3070 Ahead of Canada Retail Sales

Looking for trade ideas? Review DailyFX’s 2017 1Q Projections

Other Setups in Play:

  • EUR/NZD Targeting Resistance- Monthly Range Break to Validate Outlook
  • AUD/USD Eyeing Topside Targets Ahead of Aussie Jobs Report
  • USD/JPY Clears Monthly Range, Trendline Resistance Ahead of U.S. CPI
  • EUR/GBP Approaching Key Support Targets – 8400 in Focus Ahead UK CPI

—Written by Michael Boutros, Currency Strategist with DailyFX

Follow Michaelon Twitter @MBForex hit him during or Click Here to be combined to his email placement list.

About author

Trump’s awkward Mexican deal

Trump’s companyt has been granted trademarks in Mexico covering hotels and tourism businesses. Picture: AP Photo/Evan Vucci. ON FEBRUARY 19 last year, at a campaign ...