The US Dollar has rallied nearly 4% against the Canadian Dollar since the October lows with price now targeting key resistance objectives just higher. These are the updated targets and invalidation levels that matter on the USD/CAD charts heading into the close of the month.
USD/CAD DAILY PRICE CHART
Technical Outlook: USD/CAD broke above a key resistance pivot at 1.3130/55 early in the month with a subsequent retest as support fueling a rally to fresh four-month highs. The advance has carved out an ascending channel formation extending off the mid-October low and keeps the focus higher in price while above slope support. Key daily resistance objectives are eyed at the yearly high-day close at 1.3340and the confluence zone at 1.3376– both regions of interest for possible exhaustion / short-entries.
USD/CAD 240MIN PRICE CHART
Notes: A closer look at price action further highlights the ascending slope series we’ve been tracking with the weekly opening-range lows now converging on channel support at 1.3187– Ultimately a break below 1.3130 would be needed to shift the focus back to the short-side. A breach above the median-line here looks for a stretch towards the upper parallels- I’ll be looking for exhaustion there IF reached.
Bottom line: The immediate risk remains weighted to the topside in USD/CAD but the advance is vulnerable heading into these topside levels. From a trading standpoint, look to reduce long exposure / raise protective stops on a move towards 1.3340. We’ll be on the lookout for a reaction on stretch higher for possible short-entries.
USD/CAD TRADER SENTIMENT
