Advertisement
Australia markets closed

  • ALL ORDS

    7,837.40
    -100.10 (-1.26%)
     

  • ASX 200

    7,575.90
    -107.10 (-1.39%)
     

  • AUD/USD

    0.6535
    +0.0012 (+0.18%)
     

  • OIL

    83.66
    +0.09 (+0.11%)
     

  • GOLD

    2,349.60
    +7.10 (+0.30%)
     

  • Bitcoin AUD

    97,732.61
    -1,848.23 (-1.86%)
     

  • CMC Crypto 200

    1,383.71
    -12.82 (-0.92%)
     

  • AUD/EUR

    0.6108
    +0.0035 (+0.57%)
     

  • AUD/NZD

    1.0994
    +0.0037 (+0.33%)
     

  • NZX 50

    11,805.09
    -141.34 (-1.18%)
     

  • NASDAQ

    17,718.30
    +287.79 (+1.65%)
     

  • FTSE

    8,139.83
    +60.97 (+0.75%)
     

  • Dow Jones

    38,239.66
    +153.86 (+0.40%)
     

  • DAX

    18,161.01
    +243.73 (+1.36%)
     

  • Hang Seng

    17,651.15
    +366.61 (+2.12%)
     

  • NIKKEI 225

    37,934.76
    +306.28 (+0.81%)
     

USDCAD Breakdown Stalls at Key Support- May Opening Range in Focus

Michael Boutros

DailyFX.com -

Talking Points

  • USDCAD responds to key near-term support heading into month close

  • Scalps target rebound – rally to offer favorable shorts

  • Event Risk on TapThisWeek

USD/CAD Daily

USDCAD Breakdown Stalls at Key Support- May Opening Range in Focus
USDCAD Breakdown Stalls at Key Support- May Opening Range in Focus

Chart Created Using FXCM Marketscope 2.0

Technical Outlook

  • USDCAD rebounds off key support confluence into 1.1976/88

  • Resistance eyed at weekly highs / ML confluence (highlighted region)

  • Broader outlook remains weighted to the downside below January median line (bearish invalidation)

  • Support break targets objectives at 1.1850 & 1.1726

  • Topside breach eyes resistance objectives at 1.2312 & 1.2384

  • Daily RSI resistance trigger pending

  • Event Risk Ahead: US ISM Manufacturing & Canada Manufacturing PMI tomorrow

ADVERTISEMENT

USD/CAD 30min

USDCAD Breakdown Stalls at Key Support- May Opening Range in Focus
USDCAD Breakdown Stalls at Key Support- May Opening Range in Focus

Notes:The USDCAD has continued to trade within the confines of a well-defined median-line formation off the March 31st high with yesterday’s rebound off key daily support charging a rally back towards the upper MLP at 1.2150. A breach above this region risks a rally back towards the operative daily ML, currently around 1.2265 backed by the 23.6% retracement at 1.2311. Note that we are closing out April trade with the May opening range in focus as we head into next week.

Bottom line: looking for a resolution to this week’s range heading into May with a breach above targeting the January ML (favorable short entries?). Interim support 1.2068 backed by 1.1978 & this week’s low / ML support at 1.1944. A quarter of the daily ATR yields profit targets of 29-32 pips per scalp. Caution is warranted heading into event risk out of the US & Canada tomorrow with the manufacturing data on tap for both counterparties likely to fuel added volatility in USD & CAD crosses.

* 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.

Relevant Data Releases

USDCAD Breakdown Stalls at Key Support- May Opening Range in Focus
USDCAD Breakdown Stalls at Key Support- May Opening Range in Focus

Other Setups in Play:

---Written by Michael Boutros, Currency Strategist with DailyFX

For updates on this scalp and more setups follow him on Twitter @MBForex

To contact Michael email mboutros@dailyfx.com or Click Here to be added to his email distribution list

Join Michael for Live Scalping Webinars on Mondays on DailyFX at 12:30 GMT (8:30ET)

Interested in learning about Fibonacci? Watch this Video


original source

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
Learn forex trading with a free practice account and trading charts from FXCM.