(MENAFN- DailyFX) eekly technicals on USD/CAD- Breakdown targeting yearly range lows / key support 1.3052 Check out our 2019 projections in ourFree DailyFX US Dollar Trading Forecasts Join Michael for Live Weekly Strategy Webinars onMondays at 12:30GMT
TheUS Dollaris down nearly 3% against theCanadian Dollarsince the yearly highs registered last month with the decline now targeting the 2019 range-lows. These are the updated targets and invalidation levels that matter on theUSD/CADweekly chart.Review this week's Strategy Webinarfor an in-depth breakdown of this Loonie setup and more.
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USD/CAD Price Chart – Loonie Weekly
Notes: In my lastUSD/CAD Weekly Price Outlookwe noted a key support zone, 'around 1.3274- a break below this zone would suggest a larger correction is underway targeting 1.3052/99- look for a bigger reaction there IF reached.' Price marked an outside-weekly reversal to close below 1.3274 last week with price now probing four-month lows. Note that weekly RSI held sub-60 throughout the early-2019 advance and suggests the broader risk remains weighted to the downside from a momentum standpoint.
Key support remains at the yearly opening-range lows / 38.2%retracementat 1.3052/68 – ultimately a break below the 100% extension at 1.2969 is needed to suggest a more significant correction is underway. Interim resistance now stands back at 1.3274 with bearish invalidation now lowered to 1.3435/37.
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Bottom line:The focus remains on a drop towards key support at 1.3052/68 on the back of last week's reversal. From a trading standpoint, look to reduce short-exposure / lower protective stops on a move towards the yearly range lows- look for a reaction there. We'll favor fading weakness sub-1.3274 for now. Review my latestUSD/CAD Technical Outlookfor a closer look at the near-term Loonie trading levels.
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USD/CAD Trader Sentiment
A summary ofIG Client Sentimentshows traders are net-long USD/CAD - the ratio stands at +1.04 (51.1% of traders are long) – neutral reading Long positions are 7.1% higher than yesterday and 34.5% higher from last week Short positions are 6.0% lower than yesterday and 29.0% lower from last week We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggestsUSD / CADprices may continue to fall. Traders are further net-long than yesterday and last week, and the combination of current positioning and recent changes gives us a stronger USD/CAD-bearish contrarian trading bias from a sentiment standpoint.
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--- Written byMichael Boutros , Technical Currency Strategist with DailyFX
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https://www.dailyfx.com/forex/technical/article/fx_technical_weekly/2019/06/23/Oil-Price-Weekly-Outlook-Crude-Rebound-Face-First-Test-of-Resistance.html?ref-author=Boutros
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