Canadian Dollar Price Outlook: USD/CAD Rally At Resistance Into FOMC

The Canadian Dollar is down more than 0.28% against the US Dollar since the start of the week with the recent price rally taking Loonie within striking distance of near-term down-trend resistance heading into the FOMC interest rate decision later today. These are the updated targets and invalidation levels that matter on the USD/CAD charts.

CANADIAN DOLLAR PRICE CHART – USD/CAD DAILY

(Click on image to enlarge)

 

Canadian Dollar Price Chart - USD/CAD Daily - Loonie Techncial Forecast - Trade Outlook

Chart Prepared by Michael Boutros, Technical Strategist; USD/CAD on Tradingview

Technical Outlook: In my last Canadian Dollar Price Outlook we noted to look for a reaction as USD/CAD was approaching near-term resistance at 1.3258/58- “A breach would likely fuel an accelerated rally exposing subsequent topside resistance objectives at 1.3288 with broader bearish invalidation at 1.3306.” Price registered a high at 1.33 this week before pulling back with daily resistance steady at the upper parallel / 61.8% retracement at 1.3288- a close above this threshold is needed to keep the near-term long-bias viable.

CANADIAN DOLLAR PRICE CHART – USD/CAD 120MIN

(Click on image to enlarge)

Canadian Dollar Price Chart - USD/CAD 120min - Loonie Technical Forecast - Trade Outlook

Chart Prepared by Michael Boutros, Technical Strategist; USD/CAD on Tradingview

Notes: A closer low at Loonie price action sees USD/CAD continuing to trade within the confines of a descending pitchfork formation extending off the August / September highs with breach above the medina-line late-last week fueling a rally towards the upper parallels. Initial resistance steady at the 1.3284/88 with a breach above 1.3306 needed to validate a breakout.

Support rests with the weekly open / 50% retracement at 1.3217/20 backed by the confluence support around 1.32- a break below this level would be needed to mark resumption of the broader downtrend targeting the 1.3145/55 pivot zone.

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