The Canadian Dollar[1] looks poised for further gains with USD/CAD looking vulnerable here after rallying nearly 11% off the September low. Ultimately, the pullback should offer more favorable long-entries as price continues to trade within the confines of a broad ascending technical formation. These are the updated intraday targets & invalidations levels that matter for USD/CAD heading into the close of the June trade.Review this week’s Strategy Webinar[2] for an in-depth breakdown of this setup and more.
USD/CAD Daily Price Chart
Technical Outlook: In last week’s Technical Perspective on the USD/CAD[3], we highlighted a breach above confluence resistance at 1.3100 (also the objective monthly opening-range) with our broader focus weighted to the topside in price. The rally extended into the 50% retracement of the 2016 decline at 1.3376 with price failing a second attempt yesterday on building momentum divergence. Note that the 61.8% line of the ascending pitchfork formation[4] extending off the yearly lows also converges on this region into the close of the week/month.
The immediate threat is lower against the high-day close at 1.3341 with a break below former slope resistance (blue) at ~1.3240 shifting the focus back towards the median-line at 1.3165 and a more significant Fibonacci[5] support confluence at 1.3100/32- both areas of interest for possible exhaustion / long-entries IF reached.
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USD/CAD 240min Price Chart
Notes: A closer look at Canadian Dollar price action shows the rejection of the 1.3376 resistance barrier with USD/CAD now attempting to
