USD/CAD Six-Day Win Streak In Jeopardy
Shain Vernier • 1 min read
The USD/CAD has put in a decent retracement today and may be on the verge of snapping a six-session forex winning streak. At press time (11:15 AM EST), rates are off more than 20 pips. Several daily downside support levels are coming into view as the Loonie gains ground against the Greenback.
It has been a discouraging week for those long the Canadian dollar. A spike in WTI pricing and a FED rate cut have not been enough to post any gains vs the USD. Wednesday’s lagging BoC CPI report largely offset the dovish FED action. Is there anything that can drive the USD/CAD back to the early-September value area near 1.3150? Perhaps tomorrow’s Canadian Retail Sales (July) figures will do the trick.
USD/CAD: Technical Outlook
At the moment, the USD/CAD remains within both intermediate and daily bullish territory. Rates are up more than 100 pips from last Thursday and are holding above 1.3250. If we see a late-day retracement, a buying opportunity may come to pass.
Here are the levels to watch for the rest of the session:
- Support(1): Bollinger MP, 1.3263
- Support(2): Current Wave 32% Retracement, 1.3243
- Support(3): Daily SMA, 1.3235
Bottom Line: The USD/CAD daily chart features three converging support levels between 1.3265 and 1.3235. Going long from the center of this area isn’t a bad way to join this week’s trend.
As long as the Swing High (1.3310, not pictured) remains valid, I will have buy orders in queue from 1.3249. Within an initial stop at 1.3224, this trade produces 25 pips profit using a standard 1:1 risk vs return management plan.