- USD/CAD trade stays constructive above 1.3070
- Updated targets cancellation levels
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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.
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
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
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