Canadian Dollar trying a bull restart – USDCAD forecast

  • The US Dollar has renewed its slightly more negative theme, which has seen most major currencies advance already this week against the greenback.
  • This has been in reaction to global equity markets trying to rebound, as the September tech rout has eased and stock indices have held support.
  • In addition, the Canadian Dollar has tried to recover September losses, as the oil price has stabilised after its early September sell-off.
  • This leaves risks higher for USDCAD for today and into the second half of September.

USDCAD day trade outlook: Bias stays back lower

A sideways consolidation Monday and a dip lower already overnight, after Friday’s prod higher and failure from the top of our 1.3203/07 resistance area, and whilst just below 1.3207 we see a negative bias from the earlier September failure and setback from 1.3259, to just leave the risk to the downside for Tuesday. 

Day trade setup

  • We see a downside bias for 1.3114 and 1.3083; a break here aims for 1.3033 and maybe 1.2990.
  • But above 1.3207 opens risk up to 1.3259 and 1.3272 and possibly towards 1.3347.

USDCAD intermediate-term outlook

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

  • Downside risks: We see downside risk for 1.2990/1.2948, 1.2799 and 1.2550.
  • What changes this? Above 1.3460 shifts the intermediate-term outlook to neutral and above 1.3715 to bullish.
6 Hour USDCAD Chart
6 Hour USDCAD Chart

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

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