USDCAD weakness

Intermediate

USDCAD day trade outlook: Still bearish

Day trade update and view

A Tuesday sell-off to probe below 1.3270 support to 1.3266, then despite a bounce from here to still reinforce Monday’s stall back lower after the Thursday-Friday rebound remained capped by 1.3420 resistance, to renew bear forces from the early August sell-off through the key swing low at 1.3309 and February support at 1.3267, to keep the risk to the downside for Wednesday. 

Day trade setup

·      We see a downside bias for 1.3266 and then 1.3229; a break here aims for the key swing low at 1.3198, maybe towards 1.3118.

·      But above 1.3361 opens risk up towards 1.3420, which we would look to try to cap; Above targets the 1.3460/83 peaks.

USDCAD intermediate-term outlook

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

  • Downside risks: We see downside risk for 1.3198 and 1.3000/1.2948
  • What changes this? Above 1.3832 shifts the intermediate-term outlook from bearish straight to bullish.

6 Hour USDCAD Forex Chart

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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