USD/CAD Breakout and Retest

November 17, 2016

With the US Dollar continuing full steam ahead, I just wanted to upload a quick Technical Analysis blog with a focus on USD/CAD.

USD/CAD Weekly:
161117_usdcad_weekly
Click on chart to see a larger view.

We looked at the USD/CAD chart around a month ago now on that linked blog. Back then, price was pushing the upper bounds of a short-term bullish channel and we had this to say:

“I quite like the bullish nature of this test because it’s in the direction of the major trend and there seems to be some nice momentum behind the move if this 5 minute retrace is anything to go by.”

USD/CAD Daily:
161117_usdcad_daily
Click on chart to see a larger view.

Coming back into the present, and we can see that horizontal weekly level has broken and price is pulling back inside it to retest the first intraday level of support.

As you can see on that daily chart above, price is pulling back into previous resistance that could now possibly act as support. If this does turn out to be the case, this level offers excellent risk reward for USD/CAD longs to manage their risk around.

Let us know your thoughts on USD/CAD with a Twitter mention on @VantageFX.

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On the Calendar Thursday:
AUD Employment Change
AUD Unemployment Rate

GBP Retail Sales m/m

USD Building Permits
USD CPI m/m
USD Core CPI m/m
USD Philly Fed Manufacturing Index
USD Unemployment Claims
USD Fed Chair Yellen Testifies

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Dane Williams – @VantageFX

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