Canadian Dollar Technical Outlook: USD/CAD Seven-Day Rally Tests Major Resistance
USD/CAD is pressing into a major technical barrier after an extended advance, raising the risk for price inflection as momentum stretches.
Written by
Michael Boutros
Sr. Technical Strategist
Canadian Dollar Technical Outlook: USD/CAD Multi-Timeframe Analysis
The USD/CAD rally has logged four straight weekly gains, up nearly 3.4% from the August low and now testing the year's highest closing levels. Michael Boutros, StoneX Media Senior Market Analyst, walks through the weekly, daily and four-hour charts and the event calendar framing the move. The pair has risen on 13 of the last 14 days with daily momentum at its highest since June, and each of the last three seven-day advances was followed by at least a one-day pause. A close back below the pitchfork median line with RSI under 70 would open the door to a pullback, as Federal Reserve speakers, core PCE inflation, U.S. nonfarm payrolls and the Canada employment report land into the month and quarter turn.
This content was created by an affiliate of StoneX Trading and represents the views and opinions of the author/speakers, not the views and opinions of StoneX Group Inc., or its subsidiaries. The content has not been independently reviewed by StoneX Trading
Key USD/CAD Economic Data Releases
--- Written by Michael Boutros, Senior Technical Strategist
Follow Michael on Twitter @MBForex
Latest market news
Web Trader platform
Our sophisticated web-based platform is packed with features.
Open an account today
Experience award-winning platforms with fast and secure execution.
Economic calendar
Related articles
EUR/USD forecast: All eyes on Warsh at Jackson Hole - Forex Friday
For much of this week, the EUR/USD has been edging lower with the US dollar regaining some ground after last week’s sell-off that was triggered, in part, by the bond market worries. Investors have been unwilling to bet further against the US dollar so far this week ahead of Kevin Warsh’s keynote speech at the Jackson Hole summit, due later today.
Bitcoin Forecast: BTC/USD Back to $80K Ahead of Warsh’s Jackson Hole Speech
After surging over $15,000 in the past 10 days alone, there is risk of a near-term pullback if Warsh says anything remotely hawkish at Jackson Hole - what are the levels to watch from here?
DAX and EUR/USD forecast: Lower energy prices, yields offer support
But the question, of course, is how much further oil prices and bond yields can fall. For now, the combination is supportive of risk assets and is helping to sustain a relatively benign decline in the dollar. The focus today will be on US core PCE inflation, due for release shortly, while Nvidia’s second-quarter earnings will provide another test for risk appetite after the US markets close – not just for US indices but for global tech-heavy indices given the influence Nvidia has over the global tech and AI names.