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 mboutros@dailyfx.com or Click Here to be combined to his email placement list.

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