The Canadian Dollar is up more than 2.7% against the US Dollar[1] since the late-May high in USD/CAD[2] with price now testing near-term downtrend support. These are the updated targets and invalidation levels that matter on the USD[3]/CAD[4] charts into the close of the month. Review this week’s Strategy Webinar[5] for an in-depth breakdown of this setup and more.
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USD/CAD Price Chart - Loonie Daily
Technical Outlook: In my latest Canadian Dollar Price Outlook[8] we noted that the USD/CAD recovery was approaching key topside resistance objectives at the, “1.3435/37 pivot zone with trendline confluence just higher around ~1.3460s – we’re looking for possible exhaustion off one of these two zones.” Price registered a high at 1.3432 before posting an outside-day reversal lower on the back of the FOMC[9] interest rate decision.
The decline has now taken out the monthly opening-range lows with price now responding to confluence support at 1.3175 – a region defined by the lower median-line parallel and the 78.6% retracement[10] of the late-January advance. A daily close below this threshold is needed to mark resumption targeting more significant support at the yearly low-day close / 100% extension at 1.3105/23 – look for a bigger reaction there IF reached.
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USD/CAD Price Chart - Loonie 120min
Notes: A
