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USDCAD Technical Analysis 9th November 2012

USDCAD Technical Analysis 9th November 2012

USDCAD Technical Analysis 9th November 2012

  • The USD/CAD printed a bullish engulfing/outside candle onWednesday (7th November) and has subsequently resumed the dominant recent trend to the upside.  Technical analysts typically prefer to see these candle formations at swing lows; nonetheless, the close proximity to a key technical level will have caught the attention of USDCAD techs. 
  • Price has now paused at the resistance confluence level comprised of USD/CAD parity (1.000), previous resistance highs from last week and the 200 day SMA (simple moving average).  
  • The USD/CAD had roughly held above previous trend line resistance on the daily timeframe closing basis.  This prior resistance level is now acting as support.
  • If the recent Loonie upside momentum can continue, and the US dollar can extend recent gains versus its Canadian dollar counterpart, the 50% retrace of 1.0444 > 0.9631 is the initial technical level on a break above parity. The 1.0051 area is also a previous price pivot zone and is roughly aligned with this 50% retrace.
  • To the downside on a reversion to the recent range, the bullish outside candle low his located at 0.9873 (see figure 2).  This area marks the 4 hour 200 period SMA and a 38.2% Fibonacci retrace.  This is also the previous resistance level which capped the USD/CAD from September through October. 
  • We also note that Crude-oil futures (often correlated with the CAD) have added to recent gains during electronic trading today following positive U.S. economic data over the previous session.  U.S. crude for December delivery has risen 0.3% to trade around $85.30 a barrel on the Globex.
usdcad flag USDCAD Technical Analysis 9th November 2012
USD/CAD Daily Chart (Figure 1)

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USD/CAD 4 Hour Chart (Figure 2)

canadian dollar 2012 11 09 07 56 03 1024x704 USDCAD Technical Analysis 9th November 2012

Related terms:

Is the Canadian dollar stronger than US dollar.

USDCAD Price Action.

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