Canadian Dollar trying a bull restart – USDCAD forecast

Intermediate
  • 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

Comment on this video

Your email address will not be published.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


Latest Related News

US Dollar stays weak as AUDUSD and USDCAD approach key levels

Dollar Index reaches final major support (DXY forecast)Euro breaks up (EURUSD forecast)Pound posts negative (GBPUSD forecast)Aussie reaches major monthly resistance (AUDUSD forecast)Dollar-CAD approaches its major support zone (USDCAD forecast) Continued

NZD leads “risk” currencies higher – NZDUSD, AUDUSD, and USDCAD forecasts

A solid consolidation tone since midweek, but November strength seen across the major “commodity” or “risk” currencies (the New Zealand, Australian and Canadian Dollars) remains intact.The “risk on” price action is still being assisted by:Pfizer, Moderna and Astra Zeneca/ Oxford COVID-19 vaccine hopesExtension of the Biden bounceMixed, but marginally positive economic data compared with consensusHere we look at the NZDUSD, AUDUSD and USDCAD charts and… Continued

“Risk currencies” consolidating, but still bullish – AUDUSD, NZDUSD and USDCAD forecasts

A consolidation theme over the past couple of days for the Australian, New Zealand and Canadian Dollars, the major “risk currencies”We see this as a digestion with the core “risk on” theme intactThe “risk on” outlook driven by:The Pfizer, Moderna and Astra Zeneca/ Oxford COVID-19 vaccine announcementsCongress looking to discuss the next pandemic relief packageMnuchin pulling the plug on some pandemic lending programs has been… Continued

Mixed signals from the US Dollar in “risk on” environment

Positives on Dollar Index, but fails to develop - DXY forecastEuro fails at daily resistance - EURUSD forecastYen stops at its daily resistance after buy signal and profit taking - USDJPY forecastLikewise on long Aussie and Kiwi positions - AUDUSD and NZDUSD forecastsUS Dollar-CAD holds monthly support and rallies - USDCAD forecast Continued

“Risk currencies” dip, but stay bullish (AUDUSD, NZDUSD and USDCAD forecasts)

A corrective setback for the major “risk currencies” from the middle of this week, for the Australian, New Zealand and Canadian Dollars.We see this as corrective in nature, with the underlying “risk on” theme intact, driven by:The Pfizer COVID-19 vaccine announcementA Joe Biden victoryAn expected split Congress, the Republicans likely holding the SenateThe slowing of the rise in COVID-19 cases in Europe, with lockdown measures… Continued

Forex Brokers in your location


SIGN UP

72% of retail investor accounts lose money when trading CFDs with this provider.


SIGN UP

74-89% of retail investor accounts lose money when trading CFDs with this provider.


SIGN UP

75% of retail investor accounts lose money when trading CFDs with this provider.


SIGN UP

76.4% of retail investor accounts lose money when trading CFDs with this provider.