Canadian Dollar stays firm and US Dollar weak – USDCAD Forecast

  • This week’s “risk on” theme extended on Thursday, and despite an overnight dip in Asian stock indices into Friday, we still see an overall positive tone to global financial markets into the end of the week and month.
  • In the Forex space, the US Dollar stays weak, still a safe haven during the current global health crisis, so looking vulnerable in the “risk on” environment.
  • Furthermore, the “risk currencies” amongst the Majors, the Australian, New Zealand and Canadian Dollars have all sustained an underlying positive tone.
  • Here we spotlight the positive technical outlook fr the Canadian Dollar, with a negative USDCAD forecast.

USDCAD day trade outlook: Negative and aiming lower

A negative Thursday consolidation, after Wednesday’s push into and rebound from within our 1.3726/04 support area from March (bouncing from 1.3718), but capped by 1.3849 initial resistance, to retain negative forces from Tuesday’s plunge through key 1.3846 support, to keep the risk back lower Friday.

  • We see a downside bias for 1.3718/04; a break below here maybe aims for 1.3637.
  • But above 1.3849 targets 1.3938, maybe even towards 1.4003.

USDCAD intermediate-term outlook

The April push below 1.3922 set an intermediate-term bear trend.

  • Downside risks: We see downside risk for 1.3513 and 1.3198
  • What changes this? Above 1.4349 shifts the intermediate-term outlook straight to an intermediate-term bull theme.

4 Hour USDCAD Chart

USDCAD Chart 2020-05-29

Editor in chief

Steve Miley has 29 years of financial market experience and as a seasoned expert now has many responsibilities. He is the founder, Director and Primary Analyst at The Market Chartist, the Editor-in...continued

Comment on this video

Your email address will not be published. Required fields are marked *

Latest Related News

“Risk on” resumes! Data wins over virus concerns

Macroeconomic/ geopolitical developments Global financial markets have started to resolve the indecisive theme that has been evident from the middle of June into more of a “risk on” bias to start July.Markets have been caught between two competing forces; increasingly positive economic data compared to consensus and the rise in COVID-19 cases (particularly in the southern states of the US, but also in pockets globally).The… Continued

A quiet week in the Forex Space

US Dollar Index in a range (DXY Forecast)Euro reach an upside target and signals an end to the uptrend (EURUSD forecast)Elsewhere a minor positive in DollarCAD (USDCAD forecast) Continued

Mixed fortunes for the US Dollar

Positive on Dollar Index as price rotates in broad sideways range (DXY)Negative on the Euro (EURUSD)Canadian Dollar firms as USDCAD breaks down Continued

USDCAD: what will CAD do with a broken oil market?

USDCAD is one of the most highly oil dependant pairs since both countries are major exporters of Crude oil, CAD being even more oil price dependant. Recent collapse of the oil market prompts to take a closer look at the short-term and long-term view. Technical View Looking at the weekly chart with applied Elliott Waves since 1994 we see that USDCAD is currently in wave… Continued

Forex Range Bound

A quiet week saw a minor reversal and profit taking point for the US Dollar Index (DXY)EURUSD negative in a rangeElsewhere currencies stuck in the middle of their ranges (GBPUSD, USDJPY, AUDUSD, NZDUSD, USDCAD) Continued

Forex Brokers in your location


79% of retail investor accounts lose money


78,6% of retail investor accounts lose money


76.4% of retail CFD accounts lose money.


79% of retail investor accounts lose.