The Canadian Dollar[1] turned positive on the week against the US Dollar[2] today with the recent USD/CAD[3] reversal` off key resistance now approaching near-term downtrend support.. These are the updated targets and invalidation levels that matter on the USD[4]/CAD[5] weekly chart. Review my latestWeekly Strategy Webinar[6] for an in-depth breakdown of this Sterling price setup and more.
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Canadian Dollar Price Chart – USD/CAD Daily
Chart Prepared by Michael Boutros[9], Technical Strategist; USD/CAD on Tradingview[10]
Technical Outlook: In my latest Canadian Dollar Price Outlook[11] we noted that the, “recent decline keeps the risk weighted to the downside targeting the lower bounds of the range.” USD[12]/CAD is down more than 0.4% off the weekly highs with price now approaching downslope support at the median-line of the broader descending pitchfork[13] formation we’ve been tracking off the yearly highs. A break / close below this slope is needed to keep the short-bias viable targeting more significant support at 1.3145/55- look for a bigger reaction there IF reached. Monthly open resistance stands at 1.3240 with broader bearish invalidation steady at 1.3280/87 – a region defined by the 61.8% retracement[14] of the September and October declines.
Canadian Dollar Price Chart – USD/CAD 120min
Notes: A closer look at Loonie price action shows USD/CAD trading within the confines of a near-term descending pitchfork formation with price now approaching the lower parallel near last week’s low at 1.3171- a break there would keep the focus on 1.3145/55 with weakness beyond this region needed to fuel the next
