Obviously there will be a lot happening next week from a fundamental perspective and we are expecting to see increased volatility in the financial markets across the board. But the focus of this short article will be on the technical aspects and specifically on the USD/CAD pair. Now, after the Bank of Canada’s shenanigans earlier in the week, the Loonie managed to eventually climb higher, reaching 1.3400. At the time of this writing, it looks set to close the week in the positive territory.
The long-term weekly chart of the USD/CAD points to significant gains as things stand. The key technical points to consider going forward:
- Bullish breakout above key 1.3295 resistance, now support, suggest path of least resistance to the upside
- Reclaiming the 55-week moving average is important – there was significant follow-through on previous occasions when the USD/CAD moved above this average
- This year’s earlier sell-off came to a halt between the long-term 38.2% and 50.0% retracement levels. This relatively shallow pullback is usually a very bullish sign
- Potential bullish objectives: 1.3655 (old support), 1.3840 (61.8% Fib) and 1.4065 (last weekly up candle prior to down move)
- Short-term bias bearish below 1.3295 on weekly closing basis. If so, 1.30 or lower could be the next stop
Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.
Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. GAIN Capital Group, LLC is a registered Futures Commission Merchant and Retail Foreign Exchange Dealer with the Commodity Futures Trading Commission (CFTC)and is a member of the National Futures Association (NFA # 0339826) in the US, GAIN Capital UK Ltd is authorised and regulated by the Financial Conduct Authority (FCA) in the UK, GAIN Capital Australia Pty. Ltd is regulated by the Australian Securities and Investment Commission (ASIC) in Australia, and GAIN Capital Japan Co. Ltd is authorised and regulated by the Financial Services Agency (FSA) in Japan.