The Canadian Dollar was down for the fourth-consecutive week against the US Dollar with USD/CAD rallying nearly 2.5% off long-term confluence support at the yearly low. The recovery may be vulnerable near-term heading into key confluence resistance and we’re looking for guidance off this pivot zone this week. These are the updated targets and invalidation levels that matter on the USD/CAD weekly price chart. Review my latestWeekly Strategy Webinar for an in-depth breakdown of this Loonie price setup and more.
Loonie Price Chart – USD/CAD Weekly
Notes: USD/CAD rebounded from a critical weekly support zone last month with the advance failing just pips ahead of initial resistance targets- a high registered at 1.3345. The pullback now covers a well-define monthly opening-range with price trading just above the objective August open at 1.3190. Note that price remains within the confines of a modified descending pitchfork formation extending off the 2018 high - USD/CAD failed to mark weekly close above the median-line of this slope with momentum holding just below 50.
Key resistance stands at the 61.8% retracement of the May decline / 2019 high-week close at 1.3355/70 backed by the trendline confluence around ~1.3430s- a weekly close above this level would be needed to suggest a larger price reversal is underway. Key support steady at 1.3052 backed by 1.2972.
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