All Articles Tagged - USDCAD

Daily Market Comment – Wall Street rediscovers gravity ahead of US jobs report

Posted on September 4, 2020 at 8:06 am GMT

Stock markets tank as investors dump their tech darlings Yet, there is no sense of panic in the market, especially among currencies US jobs report today might decide if this correction still has some mileage in it Risk aversion makes a rare appearance After cruising higher without any significant corrections for three months now, the US equity market finally suffered a meaningful setback on Thursday. The S&P 500 lost 3.5% and the Nasdaq was down 5% as investors dumped tech [..]

Technical Analysis – USDCAD aims for a bullish breakout but bears still in play

Posted on September 4, 2020 at 7:43 am GMT

USDCAD is pushing for a close above the long-term ascending trendline drawn from September 2017, which could also drive the price out of the 5 ½-month old downward-sloping channel, following the bounce within the 1.3040-1.2985 area. Should the pair break significantly above the channel and the 20-day simple moving average (SMA), the bullish action could stretch towards the 50-day SMA currently at 1.3350, where the 61.8% Fibonacci of the 1.2556-1.4667 upleg (2018-2020) happens to be. Higher, resistance could next emerge [..]

Canadian jobs data could add to recovery hopes in Q3 – Forex News Preview

Posted on September 3, 2020 at 12:10 pm GMT

Canadian employment readings will be closely watched on Friday at 12:30 GMT as markets weigh the prospects of Canada recovering faster than the US in the coming quarters. Forecasts suggest a decline in the jobless rate and a softer rise in employment, which could endorse the growing optimism, especially if the numbers come in brighter-than-expected, further fuelling the rally in the loonie. Canada’s fortunes could be better than US’s The loonie scored five consecutive green months against the US dollar but August brought the bulk [..]

Technical Analysis – USDCAD communicates a commanding bearish bias

Posted on September 1, 2020 at 9:06 am GMT

USDCAD seems to be pursuing its proclaimed bearish direction, something also conveyed through the dominant negative bearing within the simple moving averages (SMAs). The short-term oscillators as well as the falling Ichimoku lines deliver a negative demeanour reinforcing this view. The MACD, some distance in the negative region, is decreasing below its red signal line, while the RSI is slipping further in oversold territory. Moreover, the stochastic oscillator has retreated back into the oversold zone, promoting further losses in the [..]

Daily Market Comment – Sinking dollar lifts all FX boats

Posted on September 1, 2020 at 8:16 am GMT

Dollar breaks down across multiple charts, without a clear trigger Other major currencies climb alongside gold, Nasdaq hits new records Today: European inflation, US manufacturing, and Fed’s Brainard Dollar: The pain train rolls on There is no shortage of volatility in the FX arena. The world’s reserve currency continues to break down, in fear that the Fed’s new regime shift may succeed in driving inflation higher and diminish the greenback’s future purchasing power. The dollar index sank to a fresh [..]

Week Ahead – US jobs report eyed for recovery progress; Calm and steady at the RBA

Posted on August 28, 2020 at 11:45 am GMT

As a possible fiscal cliff looms in the United States, the August nonfarm payrolls report will be a crucial test for the strength of the economic recovery, making it the highlight of a relatively busier week as summer draws to an end. Canadian employment figures are also on the agenda, while the latest PMIs out of China will be important for market sentiment. But it is the Australian dollar that could see the most crossfire out of the major currencies [..]

Technical Analysis – USDCAD unlocks fresh 7-month low below 1.3100

Posted on August 28, 2020 at 7:10 am GMT

USDCAD has been posting more losses as it completed a fresh seven-month low of 1.3085 earlier today, remaining in a descending channel over the last five months. The momentum indicators are currently encouraging the sell-off as the MACD oscillator is developing beneath its trigger and zero lines, while the RSI is trying to meet the oversold territory. Both the Ichimocku indicators, the red Tenkan-sen and the blue Kijun-sen lines, and the 20- and 40-day simple moving averages (SMAs) are heading south [..]

Canada’s GDP to slump at a record rate, but loonie has other concerns – Forex News Preview

Posted on August 27, 2020 at 1:24 pm GMT

Canada is reporting GDP figures for the second quarter on Friday at 12:30 GMT and while the country is expected to reveal its worst contraction ever, the loonie may shrug off the data and lean on the dollar for direction. Movements in oil prices could be another market mover for the Canadian currency. Worst contraction ever In the first quarter of the year, the Canadian economy shrank by 8.2% q/q annualized thanks to domestic and global Covid-19 isolation measures, but [..]

Daily Market Comment – Dollar treads water as all eyes on Powell

Posted on August 27, 2020 at 8:37 am GMT

Markets steady as Powell’s highly anticipated Jackson Hole speech awaited Dollar braces for major dovish tilt by the Fed Aussie and kiwi lead the gainers; loonie seeks further oil boost How dovish can the Fed get? Fed chief Jerome Powell will take centre stage when he updates investors on the Fed’s policy framework review at the annual Jackson Hole conference of central bankers, which has gone virtual this year due to the ongoing pandemic. Powell will deliver his hotly anticipated [..]

Technical Analysis – USDCAD slows momentum in sideways channel

Posted on August 25, 2020 at 9:01 am GMT

USDCAD has been in a consolidation area over the last week with upper boundary the 1.3245 resistance and lower boundary the seven-month low of 1.3132, reached on August 19. The stochastic oscillator is flattening in the overbought zone and the RSI is ticking down in the positive region, suggesting more losses. The 40- and the 20-period simple moving averages (SMAs) in the 4-hour chart, are acting as strong support levels for the bears at 1.3197 and 1.3186 respectively, near the [..]

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