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US DOLLAR / CANADIAN DOLLAR (USD/CAD)

Real-time Estimate TTMZero  -  06:54 2022-12-05 am EST
1.3414 CAD   -0.24%
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USD/CAD Technical Analysis: Dip Toward 34-DMA Favors Long Risk: Reward

09/10/2105 | 03:54pm EST
DailyFX.com -

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Talking Points:

  • USD/CAD Technical Strategy: Favorable Risk: Reward To Establish Long
  • Time Based Correction Means Sideway Chop Could Continue
  • Long Bias Invalidated on Break And Daily Close Below 1.3115 (Less than 100 pips)

The Canadian Dollar has been unable to catch a bid as the highly correlated Oil market fails to break resistance both pushing USDCAD higher longer-term. As USDOLLAR momentum has also slowed after a recent surge, USDCAD has moved sideways and overlapped prior price action. However, the 34 day moving average around 1.3145, has held as support and a continuation of this support favors a push higher towards Fibonacci Expansion targets of 1.3453/1.3525.

USDCAD continues to trade within a large range of 1.3150, the Sept. 9th low to 1.3350, the Aug 25th low. A support zone of the Sept. 3rd low at 1.3137 through the Sept. 8th low at 1.3185 keeps the focus higher. A break below that zone alone would turn the focus lower and perhaps significantly so. The current high of 1.3350 falls nearly 100-200 pips short of a significant resistance zone (1.34/36) although it’s worth noting we could be forming a rising wedge that would take us higher towards 1.3600.

Below the 34-day moving average at 1.3145, trend structure support is currently at 1.2950. The 5-day ATR of 107 pips provides a decent amount of volatility to trade the range until a breakout appears. Currently, Fibonacci retracement support continues to allow short-term value buyers a zone to take a percentage of the ATR from USDCAD.

Add these technical levels directly to your charts with our Support/Resistance Wizard app!

USD/CAD Technical Analysis: Dip Toward 34-DMA Favors Long Risk: Reward


original source

ę FXCM 2105
Stocks mentioned in the article
ChangeLast1st jan.
CANADIAN DOLLAR / JAPANESE YEN (CAD/JPY) 0.81% 100.819 Delayed Quote.9.48%
CANADIAN DOLLAR / US DOLLAR (CAD/USD) 0.17% 0.74479 Delayed Quote.-6.18%
EURO / CANADIAN DOLLAR (EUR/CAD) -0.06% 1.41673 Delayed Quote.-1.17%
PAX DOLLAR (USDP/USD) -0.52% 0.9998 End-of-day quote.-0.01%
US DOLLAR / CANADIAN DOLLAR (USD/CAD) -0.16% 1.34246 Delayed Quote.6.58%
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