The Canadian Dollar is up more than 4% against the US Dollar[1] since the May highs in USD/CAD[2] with the recent sell-off in price taking Loonie into critical pivot zone. These are the updated targets and invalidation levels that matter on the Loonie (USD/CAD) weekly price chart. Review my latestWeekly Strategy Webinar[3] for an in-depth breakdown of this gold price[4] setup and more.
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USD/CAD Price Chart - Loonie Weekly
Notes: In my last Loonie Weekly Price Outlook[7] we highlighted that, “The focus remains on a drop towards key support at 1.3052/68 on the back of last week’s reversal. From a trading standpoint, look to reduce short-exposure / lower protective stops on a move towards the yearly range lows- look for a reaction there.” The 100% extension of the December decline extends the range to 1.2972-1.3052 and USD/CAD has been testing this support zone for the past three weeks.
Note that the 2017 trendline rests just lower and a break / close below this threshold is needed to validate a break of the yearly opening-range with such a scenario targeting 1.2782 and the 61.8% retracement[8] at 1.2674. Weekly resistance stands at 1.3274 with broader bearish invalidation at the yearly high-week reversal close at 1.3371.
For a complete breakdown of Michael’s trading strategy, review his Foundations of Technical Analysis series on Building a
