The US Dollar[1] is down nearly 3% against the Canadian Dollar[2] since the yearly highs registered last month with the decline now targeting the 2019 range-lows. These are the updated targets and invalidation levels that matter on the USD/CAD[3] weekly chart. Review this week’s Strategy Webinar[4] for an in-depth breakdown of this Loonie setup and more.
New to Forex[5] Trading? Get started with this Free Beginners Guide[6]
USD/CAD Price Chart – Loonie Weekly
Notes: In my last USD/CAD Weekly Price Outlook[7] we noted a key support zone, “around 1.3274- a break below this zone would suggest a larger correction is underway targeting 1.3052/99- look for a bigger reaction there IF reached.” Price marked an outside-weekly reversal to close below 1.3274 last week with price now probing four-month lows. Note that weekly RSI held sub-60 throughout the early-2019 advance and suggests the broader risk remains weighted to the downside from a momentum standpoint.
Key support remains at the yearly opening-range lows / 38.2% retracement[8] at 1.3052/68 – ultimately a break below the 100% extension at 1.2969 is needed to suggest a more significant correction is underway. Interim resistance now stands back at 1.3274 with bearish invalidation now lowered to 1.3435/37.
For a complete breakdown of Michael’s trading strategy, review his Foundations of Technical Analysis series on Building a Trading Strategy[9]
Bottom line:The focus remains on
