USDCAD

Technical Analysis – USDCAD builds a bullish long-term outlook after triangle completion

Posted on March 18, 2020 at 3:44 pm GMT

USDCAD accelerated to a four-year high of 1.4532 after finally completing a bullish symmetrical triangle on the weekly chart that become more evident at the start of 2019. The bulls are now set to post the largest weekly gain since 2008 and then likely head for the 2016 peak of 1.4689 as there is no significant barrier beneath that top. Yet, any furher improvement should be cautiously treated as the RSI and the Stochastics are already in overbought territory despite [..]

Daily Market Comment – Wall Street rebound falters again; rush for dollar eases slightly

Posted on March 18, 2020 at 10:01 am GMT

US shares rally on Fed liquidity boost but futures turn negative as virus uncertainty lingers Trump pushes for $1 trillion stimulus as governments step up virus response Dollar funding squeeze eases, giving other currencies a reprieve Stock markets unable to stop the bleeding Stocks were on the slide again on Wednesday as yesterday’s sharp rebound on Wall Street proved unsustainable amid fears all countries affected by the coronavirus are headed for a complete and possibly prolonged lockdown. Such a scenario [..]

Week Ahead – Pressure on Fed and BoJ to pump more stimulus; SNB meets too

Posted on March 13, 2020 at 1:50 pm GMT

As the coronavirus pandemic continues to wreak economic havoc across the globe, the pressure is on central banks to provide more stimulus amid the fast deteriorating outlook. The US Federal Reserve has already made an emergency rate reduction and is widely anticipated to follow it up with another cut next week. The Bank of Japan will be a more interesting one, however, as, although some action is certain, investors aren’t quite sure what form it will take. One central bank [..]

Daily Market Comment – King dollar reclaims throne, stocks disintegrate despite Fed bazooka

Posted on March 13, 2020 at 12:04 pm GMT

Wall Street plunges 10% as market panic intensifies, powerful Fed intervention doesn’t help Dollar outperforms amid flight to safety, gold savaged by margin calls ECB doesn’t cut rates, euro pops higher but then crumbles as Lagarde says she’s not Draghi Pandemonium worsens despite Fed restarting QE Global markets are living a nightmare. The fear that enveloped stocks evolved into full-blown panic on Thursday, with the Dow Jones falling by a staggering 10% as investors continued to liquidate everything, frightened or [..]

Technical Analysis – USDCAD retreats below 4-year high; indicators suggest pullback

Posted on March 13, 2020 at 7:36 am GMT

USDCAD looks to be overbought according to the technical indicators after the bullish rollercoaster occurred in the preceding days towards a fresh four-year high of 1.3960. The stochastic oscillator is flattening above the 80 level and is ready to post a bearish cross within the %K and %D lines. Also, the RSI is reversing to the downside after the extension above the 70 level. However, the short-term moving averages are still following the strong upside structure in the daily timeframe. [..]

Daily Market Comment – Stocks tank as Trump bans flights from Europe; ECB may disappoint

Posted on March 12, 2020 at 10:10 am GMT

ECB might not cut rates today – could introduce targeted lending measures and ramp up QE Stocks plunge, oil retreats after Trump bans all travel from Europe Yen back in vogue, but gold doesn’t get the memo Dollar holds firm despite risk aversion, reclaiming safe-haven status ECB may disappoint markets today, push euro briefly higher The European Central Bank (ECB) will have a tough balancing act on its hands when it announces its policy decision at 12:45 GMT today. On [..]

Daily Market Comment – Pound shrugs off emergency BoE rate cut

Posted on March 11, 2020 at 10:21 am GMT

Sterling recovers after BoE cut on hopes for a stimulative budget later today Market mood sours again as news flow stays negative and Trump’s stimulus plans underwhelm Dollar stages a comeback as US Treasury yields rebound somewhat BoE mimics Fed, slashes rates between meetings The Bank of England (BoE) took a page out of the Fed’s book today, unexpectedly cutting rates by 50 basis points from 0.75% to 0.25% between scheduled meetings to negate the economic impact of the [..]

Daily Market Comment – Yen explodes higher, oil crashes as the OPEC+ wars begin

Posted on March 9, 2020 at 11:02 am GMT

Investors in panic mode as oil collapses, sending shockwaves through markets Global stocks plunge, commodity currencies flash crash, dollar in agony as markets price in more Fed cuts Japanese yen the main winner, gold briefly tops $1700, euro capitalizes Markets in mayhem as oil price war compounds virus fears It’s been a dramatic beginning to the week in financial markets, with risk aversion being the only game in town as the weekend saw the OPEC+ alliance come to an end, [..]

Daily Market Comment – Dollar and stocks sink on growing virus gloom; NFP may not help much

Posted on March 6, 2020 at 9:45 am GMT

Dollar and stocks take another battering as virus fears grip markets Investors continue to flock to safety, euro a surprise beneficiary US jobs report not expected to trim Fed rate cut expectations; OPEC eyed too No reprieve for dollar sell-off The US dollar extended its losing streak on Friday, skidding to two-month lows against a basket of currencies and 6-month lows versus the safe-haven yen. Contagion fears continue to spread panic in the markets as the number of coronavirus cases [..]

Technical Analysis – USDCAD needs to hold above 61.8% Fibo to be bullish in short term

Posted on March 6, 2020 at 7:48 am GMT

USDCAD looks to be creating a floor below the eight-month high of 1.3463 and near the 61.8% Fibonacci retracement level of the down leg from 1.3664 to 1.2950 at 1.3390. Furthermore, the price remains well above the penetrated falling trend line, signaling more upside pressure in the short-term. The technical indicators seem to be losing momentum in the daily timeframe. The RSI is moving slightly to the downside in the positive territory, while the stochastic is flattening after it posted [..]

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