USDCAD Daily Chart
Chart Created Using FXCM Marketscope 2.0
Technical Outlook
USDCAD has now run into Key Resistance at a 3-way Fib Confluence at 1.0540/45
Daily RSI looks to turn over ahead of the 70-threshold- Break of former Resistance to offer trigger
Price action today (magnitude of the pullback) suggests markets watching this level
Near-term looking sideways-to-lower
Medium-term outlook remains bullish above 1.04
Note that Friday’s rally took out Trendline resistance dating back to the 2010 high
Primary objective 1.04 – Break targets secondary objective at 1.0340
Key Events Ahead: US Durable Goods, Consumer Confidence, New Homes Sales Tomorrow – Canada GDP data on Friday
USDCAD Scalp Chart
Scalp Notes: Bottom Line: Although out longer-term bias remains weighted to the topside, this key resistance barrier may offer near-term scalps into near-term support. Medium-term traders will use these pullbacks to initiate new long entries. BE WARNED that this pair is notorious for both sideways price action and shallow pullbacks and scalps should be meticulously booked at the targeted ATR percentage. We will ease up on the shorts as we approach the 1.04 threshold has this region represents key support (origin of the breakout last week) in the near-term with a break and daily close below this mark offering further conviction on a steeper correction.
*We will remain flexible with our bias with a break above 1.0555 eyeing subsequent resistance targets. It’s extremely important to give added consideration regarding the timing of intra-day scalps with the opening ranges on a session & hourly basis offering further clarity on intra-day biases.
Key Threshold Grid
Entry/Exit Targets
Timeframe
Level
Significance
Bearish Invalidation
Daily / 30min
1.0542- 1.0555
Monthly High / 100% Fib Exts / 88.6% Retrace
Break Target 1
30min
1.0600
Big Figure / Soft Resistance
Break Target 2
Daily
1.0656
2011 High / Pivot
Break Target 3
Daily / 30min
1.0699
138.2% Fibonacci Extension
Support Target 1
Daily / 30min
1.0456
78.6% Fib Ext / 23.6% Retracement
Support Target 2
30min
1.0420
May High / Dec 2011 High / Soft Support
Bullish Invalidation
Daily / 30min
1.0389-1.04
61.8% Fib Ext / 38.2% Retrace
Break Target 1
30min
1.0340-1.0345
50% Fib Ext / 50% Retrace
Break Target 2
30min
1.0290-1.03
38.2% Fib Ext / 61.8% Retrace
Break Target 3
30min
1.0255
Soft Support / Pivot
Break Target 4
30min
1.0232
23.6% Fib Ext / Pivot
Average True Range
Daily
126
Profit Targets 28-30pips
Other Scalp Setups in Play- EUR, GBP to Extend Tumble- Gold Decline Eyes Key Support $1273
Reviews today’s Scalp Webinar for further insights and current trade setups
For updates on this scalp and more setups follow him on Twitter @MBForex
—Written by Michael Boutros, Currency Strategist with DailyFX
To contact Michael email mboutros@dailyfx.com or Click Here to be added to his email distribution list
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Source: Daily fx