Looking to Continue Trading Lower

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USD / CAD Technical Outlook

  • USD / CAD finding little support from buyers
  • Breaking trend-line support near 200-day MA

USD / CAD Technical Outlook: Looking to Trade Lower

USD / CAD grew sharply in August and fell just as hard, posting a monthly investment for the second month in a row. A larger image this suggests a sale, but even if the larger image doesn’t play as it looks, the short-term doesn’t look too strong either.

The recent decline of the 12950 level has found very minimal sponsorship from buyers even with a trend line close as support. The one-day rebound last week was followed by a weak price, which suggests we will soon see further weakness.

On the 4-hr chart a descending wedge is formed, which if broken will have the 200-day at 12536 (and decreasing) in play. If that happens, it should lead to the lowest levels since July 30th. The low then was 12422. It may act as a significant floor, then it may not – we will estimate price if it is labeled.

To make the image optimistic is a bit of work. A turn higher from here and over last week’s high at 12708 will be needed to get started. Depending on how this has developed, it may become clearer that a rally might develop, or it may not. At least it would be a warning to sellers to be careful.

A currently confirmed collapse below 12569 (a 4-hour closing candle below) will break the wedge and the 200-day period follows to see signs of further momentum pushing it.

Daily USD / CAD Chart

usd / cad daily

USD / CAD 4-hour chart

usd / cad 4-hr diagram

TradingView USD / CAD charts

Resources for Forex Traders

Whether you are a new or experienced trader, we have several resources available to help you; indicator for tracking business feeling, quarterly business forecasts, analytical and educational websites held daily, business guides to help you improve business performance, and one specifically for those who are new to forex.

— Written by Paul Robinson, Market Analyst

You can follow Paul on Twitter at @PaulRobinsonFX



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