USD/CAD Technical Outlook
- USD/CAD ran towards big resistance but fell short again
- Trendless for the most part with a slight upward bias
- Scenarios to consider under certain cirumstances
USD/CAD Technical Outlook: Levels and Lines to Know About
USD/CAD ramped up again last week into early this week, but as was the case before it happened in a chaotic fashion where a short-term burst signaled exhaustion. The turn lower may be muted if the choppy, albeit upward, price action continues.
If the recent bout of weakness continues then some support may be found around 12620/2580. There is a trend-line from the June 1 low and some recent horizontal price support in that vicinity. A jab into support and forceful rejection would be the most ideal scenario to see.
Under these circumstances the low of any reversal event would be used as the line-in-the-sand for the general trading bias – stay above and the outlook is neutral to bullish, break below and more weakness could ensue.
On the top-side, it may be a bit of a bumpy ride higher, but we may still see the important 12950 level tested again. If the broader picture to turn more bullish it will need to be crossed with conviction at some point.
If the aforementioned trend support fails then the 200-day and lows from the summer will come into play at 12520, 12493, and 12422, respectively.
For now, sitting this one out. But to reiterate, a forceful rejection at support could pique interest in establishing a long with an established backstop for assessing risk. The short-side, even if support breaks, holds less appeal at this time.
USD/CAD Daily Chart
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—Written by Paul Robinson, Market Analyst
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