USD/CAD Testing Resistance Ahead Dueling US & Canadian Jobs Data

Talking Points

  • USD/CAD Longs during risk forward of pivotal US/Canada information prints
  • 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 120min

USD/CAD 120min

Technical Outlook:USDCAD is contrast near-term channel insurgency streamer into a tighten of a week a concentration is opposite a 1.3430/50 zone. Initial support rests during 1.3360/70 corroborated by a monthly / weekly open during 1.3310. A mangle next Friday’s low during 1.3284 would be indispensable to symbol a some-more suggestive annulment in a span targeting 1.3252 1.3184.

A crack above a weekly operation highs invalidates a annulment play with such a unfolding targeting 1.3476, 1.3521 a longer-term 50% retracement of a 2016 operation during 1.3575. While we can't order out another exam of a highs on a information spike tomorrow, from a trade standpoint I’ll preference vanishing strength while within this arrangement with a mangle of a weekly / monthly opening-range lows indispensable to keep a short-bias in focus.

A entertain of a daily normal loyal operation (ATR) yields distinction targets of 20-24pips per scalp. Tomorrow’s mercantile calendar is generally critical for a Loonie with a U.S. Non-Farm Payrolls news (NFP) and Canada practice both on daub during 8:30ET in New York. Added counsel is fitting streamer into a recover with a information expected to fuel increasing sensitivity in both particular currencies.

USD/CAD Testing Resistance Ahead Dueling US amp; Canadian Jobs Data

  • A outline of a DailyFX Speculative Sentiment Index (SSI) shows traders are net-short USDCAD- a ratio stands during -1.14 (46.6% of traders are long)- diseased bullish reading
  • Long positions are 2.2% reduce than yesterday though 12.5% higher from final week
  • Short positions are 4.1% lower than yesterday and 6.2% reduce from final week
  • Despite a fact sell stays net-short, a new diminution in brief positioning continues to prominence a near-term risk for a pierce lower, generally as prices examine resistance.

Relevant Data Releases

USD/CAD Testing Resistance Ahead Dueling US amp; Canadian Jobs Data

Other Setups in Play:

  • AUD/NZD Trapped- Rebound during Risk Below 1.09
  • AUD/JPY: Sell-off Approaches Initial Support Hurdles
  • GBP/USD: Fret Not, a Resolution is during Hand- Critical Support 1.23
  • AUD/USD: RBA Game Plan Levels to Know
  • Webinar: Setups We’re Tracking into a Monthly / Quarterly Open

– Written by Michael Boutros, Currency Strategist with DailyFX

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

About author

Why our cities are miserable

Video Image How long does it take us to get to work? See how long the average travel times are for our capital cities and ...