• Home
  • Contact
  • Privacy Policy
  • Store
my forex coaching
  • For Beginners
  • Strategies
  • Crypto
  • Technical Analysis
  • Stock Trading
  • Product Reviews
  • News
  • Videos
No Result
View All Result
  • For Beginners
  • Strategies
  • Crypto
  • Technical Analysis
  • Stock Trading
  • Product Reviews
  • News
  • Videos
No Result
View All Result
my forex coaching
No Result
View All Result
Home Technical Analysis

Higher Levels Appear Likely in Near-term

Forex Tips by Forex Tips
August 17, 2022
in Technical Analysis
0
Higher Levels Appear Likely in Near-term
189
SHARES
1.5k
VIEWS
Share on FacebookShare on Twitter


USD/CAD Technical Outlook

  • USD/CAD bounce off the 200-day has wedge break in play
  • Higher levels could be support by a stock market pullback

USD/CAD Technical Outlook: Higher Levels Appear Likely in Near-term

USD/CAD tagged the 200-day moving average last week, and is now trying to rise up out of a bullish-looking descending wedge. The initial turn off the 200-day has been a strong one, so momentum is already off to a good start.

The descending wedge isn’t the most robust variation, but nevertheless it is there. And, again, with price coming hard off the 200 the power of the pattern strengthens. Running over the most recent high will be key to strengthening a bullish outlook as price still remains pointed lower since the July high.

A breakout above 12985 is needed to get USD/CAD into open space back towards the July high of 13223. This might seem like a fair distance away to worry about, but USD/CAD is known for quickly garnering momentum once it gets going.

What is seen as a potential boon for higher levels is the fact that major U.S. indices, namely the S&P 500, are turning lower off the 200-day moving average and trend-line off the highs. The thinking heading into this week was that we could see at the very least a turn down in stocks in the near-term, if not looking out longer-term.

For much of the year, USD/CAD and the S&P 500 have held a strong inverse correlation, with it going to nearly -1 on occasions when looking at the 1-month time-frame. Recently it is has strengthened quite a bit as optimism returns to equities, but if we see risk sentiment sour the correlation between USD/CAD and the S&P 500 is almost certain to revert back to a much more negative value. The bottom line is that if stocks drop then USD/CAD should rise.

Tactically speaking, USD/CAD looks set to break out and so the trading bias is to the top-side. If, however, I see price turn down here soon then that bias will neutralize.

USD/CAD Daily Chart

usd/cad daily chart

USD/CAD Chart by TradingView

Resources for Forex Traders

Whether you are a new or experienced trader, we have several resources available to help you; indicator for tracking trader sentiment, quarterly trading forecasts, analytical and educational webinars held daily, trading guides to help you improve trading performance, and one specifically for those who are new to forex.

—Written by Paul Robinson, Market Analyst

You can follow Paul on Twitter at @PaulRobinsonFX





Source link

Share76Tweet47

Related Posts

Our data shows traders are now net-short France 40 for the first time since Oct 12, 2023 when France 40 traded near 7,081.90.

Our data shows traders are now net-short France 40 for the first time since Oct 12, 2023 when France 40 traded near 7,081.90.

by Forex Tips
November 2, 2023
0

Number of traders net-short has increased by 50.43% from last week.SYMBOLTRADING BIASNET-LONG%NET-SHORT%CHANGE IN LONGSCHANGE IN SHORTSCHANGE IN OIFrance 40BULLISH47.01%52.99%-25.03%...

Euro Technical Outlook – Trend Break Might be Short Lived for EUR/USD

Euro Technical Outlook – Trend Break Might be Short Lived for EUR/USD

by Forex Tips
October 27, 2023
0

Euro, EUR/USD, US Dollar, Trend Breakout, Candlestick, Bollinger Band - Talking PointsEuro bulls were rewarded earlier this week before...

AUD/NZD and EUR/AUD Might Have Similar Trade Set-Ups. Will Ranges Break?

AUD/NZD and EUR/AUD Might Have Similar Trade Set-Ups. Will Ranges Break?

by Forex Tips
October 26, 2023
0

Australian Dollar, AUD/NZD, EUR/AUD, Moving Averages, Range, Reversal -Talking PointsThe Australian Dollar remains in the range against EUR and...

Our data shows traders are now at their most net-long France 40 since Oct 05 when France 40 traded near 7,013.00.

Our data shows traders are now at their most net-long France 40 since Oct 05 when France 40 traded near 7,013.00.

by Forex Tips
October 19, 2023
0

Number of traders net-short has decreased by 37.41% from last week.SYMBOLTRADING BIASNET-LONG%NET-SHORT%CHANGE IN LONGSCHANGE IN SHORTSCHANGE IN OIFrance 40BEARISH67.08%32.92%23.34%...

Gold and Silver Prices Head for Strong Finish this Week but Bearish Trends Remain

Gold and Silver Prices Head for Strong Finish this Week but Bearish Trends Remain

by Forex Tips
October 13, 2023
0

Gold and Silver: Near-Term Technical UpdateGold and silver prices ready to wrap up a strong week?XAU/USD and XAG/USD still...

Load More

Recent Posts

  • Safe Wallet scammer steals $2M through ‘address poisoning’ in one week
  • Gold in Record Zone as Dow Breaks Out; EUR/USD, USD/JPY Eye NFP
  • Nov. 26 – Dec. 2 – Cointelegraph Magazine
  • Crude Oil Markets Dissatisfied by OPEC+
  • The SEC is facing another defeat in its recycled lawsuit against Kraken
Forex Pulse Detector

Categories

  • Alerts
  • Crypto Strategies
  • Currency
  • For Beginners
  • Forex News
  • Forex Trading Tips & Strategies
  • Technical Analysis
  • Videos

Newsletter

  • Home
  • Contact
  • Privacy Policy
  • Store

© 2018 Forex Blog

No Result
View All Result
  • Contact Us
  • Homepages

© 2018 Forex Blog.