The Canadian Dollar is down more than 0.28% against the US Dollar since the start of the week with the recent price rally taking Loonie[3] within striking distance of near-term down-trend resistance heading into the FOMC interest rate decision later today. These are the updated targets and invalidation levels that matter on the USD/CAD[6] charts. Review my latest Weekly Strategy Webinar for an in-depth breakdown of this Euro[8] price setup and more.[1][2][4][5][7]
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Canadian Dollar Price Chart – USD/CAD Daily
Chart Prepared by Michael Boutros, Technical Strategist; USD/CAD on Tradingview[11][12]
Technical Outlook: In my last Canadian Dollar Price Outlook we noted to look for a reaction as USD[14]/CAD was approaching near-term resistance at 1.3258/58- “A breach would likely fuel an accelerated rally exposing subsequent topside resistance objectives at 1.3288 with broader bearish invalidation at 1.3306.” Price registered a high at 1.33 this week before pulling back with daily resistance steady at the upper parallel / 61.8% retracement at 1.3288- a close above this threshold is needed to keep the near-term long-bias viable. [13][15]
Canadian Dollar Price Chart – USD/CAD 120min
Chart Prepared by Michael Boutros, Technical Strategist; USD/CAD on Tradingview[16][17]
Notes: A closer low at Loonie price action sees USD/CAD continuing to trade within the confines of a descending pitchfork formation extending off the August / September highs
