USDCAD

Technical Analysis – USDCAD rebounds near 1.3310 low; bearish cross in SMAs

Posted on July 31, 2020 at 7:22 am GMT

USDCAD found a strong rebound around the 1.3310 low heading towards the bearish crossover within the 20- and 40-day simple moving average (SMA) to the 200-day one. The RSI bounced off the oversold territory and is pointing south, while the %K line of the stochastic oscillator recorded a bullish cross with the %D line in the negative area. More advances could find immediate resistance at the SMAs, which are currently hovering near 1.3520. Particularly, a decisive close above this level [..]

Daily Market Comment – Fed soothes stimulus anxiety; dollar pares losses

Posted on July 30, 2020 at 8:53 am GMT

Fed tight lipped on new forward guidance but reaffirms pledge on easy policy Stocks buoyed but cautious ahead of tech earnings, US GDP and jobs data Dollar falls on Powell remarks, then bounces back; gold slips Fed maintains course, ups pressure on Congress The Federal Reserve left monetary policy unchanged on Wednesday but warned of a “slowing in the pace of the recovery”. Having already implemented a full range of tools in its fight against the coronavirus, the Fed’s decision [..]

Week Ahead – Fed meets as virus storm worsens; US and Eurozone set for historic GDP collapse

Posted on July 24, 2020 at 12:26 pm GMT

As US politicians squabble over the next fiscal stimulus bill and the country’s virus death toll ticks up again, markets may lean on the Federal Reserve next week for a quick fix. The Federal Open Market Committee (FOMC) meeting will undoubtedly be the most eagerly awaited event of the week. But second quarter GDP prints out of the United States and the euro area will not be far behind as the full extent of the economic shock from COVID-19 is [..]

Technical Analysis – USDCAD trapped below trendline; targets June’s lows

Posted on July 24, 2020 at 7:28 am GMT

USDCAD was forced to shift south after the descending trendline and the 23.6% Fibonacci level of the 1.4667-1.3314 downleg held firm once again, with the price tumbling as low as 1.3350 on Thursday. The pair is currently consolidating its losses near the 1.3380 support area but the technical indicators suggest that the bears have not abandoned the sell-off yet; the MACD is strengthening to the downside and below its red signal line, while the RSI remains comfortably below its 50 neutral [..]

Canadian inflation and retail sales to drive loonie – Forex News Preview

Posted on July 22, 2020 at 12:19 pm GMT

Canada will publish its retail sales data for the month of May at 1230 GMT on Tuesday before releasing inflation figures for June at the same time on Wednesday. Given its sharp tumble in the preceding month, the retail sales report could be the most important market mover among data releases for the loonie this week, which has just managed to stabilize from last month’s sell-off. Why the Bank of Canada is avoiding a rate cut The Bank of Canada (BoC) kept its interest [..]

Daily Market Comment – US dollar clubbed as euro cruises higher, gold glitters

Posted on July 22, 2020 at 12:17 pm GMT

Euro ascends after landmark EU deal, mostly to the detriment of the dollar Sinking dollar lifts all other boats – pound, commodity currencies, gold But some discouraging signals from the US Senate upset stocks Euro takes to the skies Global markets remained in a risk-on mood after the marathon-like negotiations between EU leaders finally bore fruit yesterday, resulting in a deal that will see substantial sums being funneled into the economies most devastated by the crisis. Even though the deal [..]

Technical Analysis – USDCAD bulls wait for a close above 1.3633

Posted on July 17, 2020 at 6:04 am GMT

The 200-day simple moving average (SMA) limited downside corrections in USDCAD, holding the pair above its recent lows. Still, positive movements were constrained too, as the descending trendline with the help of the 23.6% Fibonacci retracement of the 1.4667-1.3314 downleg managed to keep the bulls under control. Currently, the momentum indicators are not very promising that the pair could record important green sessions in the short-term. The RSI continues to consolidate below its 50 neutral mark despite holding above its [..]

Daily Market Comment – Dollar edges up, stocks slip as recovery doubts set in

Posted on July 16, 2020 at 8:51 am GMT

China’s GDP bounces back but signs of uneven recovery dampen sentiment White House’s tough line on China also a drag on risk assets Euro softer ahead of ECB; Stocks eye US earnings and retail sales for direction China returns to growth but weak spending worries markets As far as V-shaped recoveries go, China’s economic recuperation from the coronavirus couldn’t look more V-shaped. Gross domestic product (GDP) jumped by 11.5% over the quarter to June after collapsing by almost 10% in [..]

Daily Market Comment – Euro surges, stocks bounce back amid fresh vaccine hopes

Posted on July 15, 2020 at 8:33 am GMT

Vaccine hopes boost risk assets; Wall Street selloff is over before it even began Euro and aussie charge ahead; pound and loonie try to catch up Oil holds its nerve as OPEC+ set to ease production cuts Mixed earnings overshadowed by promising vaccine results Global equities were back in bullish mode on Wednesday after a brief wobble earlier in the week had some investors worried that this could be the start of a long overdue correction in the markets. However, [..]

Technical Analysis – USDCAD improves somewhat within trading range

Posted on July 14, 2020 at 1:34 pm GMT

USDCAD recently climbed above all converged simple moving averages (SMAs) and the 1.3594 level, that being the 38.2% Fibonacci retracement of the down leg from 1.4047 to 1.3314. The price is currently resting on the upper surface of the mostly horizontal Ichimoku cloud but appears to have lost the fuel to push for the ceiling of the one-month consolidation. Looking at the short-term oscillators, positive momentum has weakened. The MACD is trading slightly above zero and its red signal line, [..]

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