Weekly Forex technical analysis & trade opportunities


The following is weekly Forex technical analysis and trade opportunities for USDCAD and USDCHF currency pairs for the week of October 17 to 21. See below for technical outlook and two Forex limit orders.

15 October, AtoZForex – Although fundamental data out of US last Friday showed an improvement in Retails Sales and Producer Price Index (PPI), UoM Consumer Sentiment was published below consensus reaching one-year low. The consumer sentiment somewhat contradicts the retail data and hence might not have a sustained effect on the USD.

Looking into this week from fundamental perspective, we have several Forex trade opportunities as a result of Bank of Canada and European Central Bank rate decisions and US & UK CPI data.

Meanwhile, from technical perspective we have two Forex limit orders for USDCAD and USDCHF.

USDCAD technical analysis and trade opportunity

Looking at USDCAD, the Loonie remains on an overall bullish trend yet has recently fallen into a deeper correction as bulls failed to keep on their gains.

Since our technical analysis on Wednesday, the pair as expected rebounded from the 1.320 area (8 pips away from 1.320 level) and once again reached the first target at 1.330.

Weekly Forex technical analysis & trade opportunities Hourly USDCAD technical analysis (click to zoom in)

However, USDCAD failed to close the day above the major resistance level and formed a second top. From there onward, we saw the CAD appreciating against the USD and Fibonacci 23.6% retracement level at 1.310 was reached.

Weekly Forex technical analysis & trade opportunities Daily USDCAD technical analysis (click to zoom in)

Avoiding to trade against the trend, a good Forex risk/reward opportunity appears at 1.3022 level, from where we could long USDCAD towards 1.310/1 area with a stop loss set at 1.297.

Weekly Forex technical analysis & trade opportunities Daily USDCAD technical analysis (click to zoom in)

USDCHF technical analysis and trade opportunity

Moving on to technical analysis for USDCHF, the pair remains in a broad consolidation. Although we have signs on daily and weekly timeframes of strengthening trend to the upside direction, it would be premature to confirm a bullish trend yet and as the pair failed to close above a custom Fibonacci 10% retracement level at 0.991 we could expect another leg lower.

Weekly Forex technical analysis & trade opportunities Daily USDCHF technical analysis (click to zoom in)

Hence, we could short USDCHF from 0.9905 towards 0.9865 as a first target and 0.9820 as a second with stop loss placed at 0.9925 and using half of our typical entry size.

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