Canadian Dollar Technical Price Outlook: USD/CAD Weekly Trade Levels
The Canadian Dollar[1] continued its march lower against the US Dollar[2] with USD/CAD[3] poised to mark a fifth consecutive weekly advance. The rally keeps price within a broad consolidation pattern with the advance now approaching the upper-bounds of a multi-year formation and leaves the immediate long-bias vulnerable heading into resistance levels just higher. These are the updated targets and invalidation levels that matter on the USD[4]/CAD[5] weekly price chart. Review my latest Weekly Strategy Webinar[6] for an in-depth breakdown of this Loonie trade setup and more.
Canadian Dollar Price Chart – USD/CAD Weekly
Chart Prepared by Michael Boutros[7], Technical Strategist; USD/CAD on Tradingview[8]
Notes: In my last Canadian Dollar Weekly Price Outlook[9] we noted that USD[10]/CAD had rebounded off confluence support early in the year with, a close above 1.3140s needed to keep the focus higher in price. A gap higher into the Sunday-open the following week has fueled a rally of more than 1.2% with USD/CAD now testing the 50% retracement[11] of the decline off the 2018/2019 high at 1.3308.
A critical resistance confluence is eyed just higher at 1.3370/92- a region defined by last year’s high-week close & the 61.8% retracement and converges on basic trendline[12] resistance extending off the 2019 high. Looking for a reaction off one of these levels in the weeks ahead. Weekly open support rests at 1.3230 backed by 1.3184 with broader bullish invalidation at the 20149 low-week close 1.3058.
Bottom line: The USD/CAD rally is testing initial resistance targets and we’re on the lookout for
