All Articles Tagged - USDCAD

Technical Analysis – USDCAD finds support at the 50-day SMA

Posted on September 22, 2023 at 12:37 pm GMT

USDCAD in an aggressive decline from its 5-month high of 1.3693 Dives beneath the 200-day SMA, but the 50-day SMA holds its ground for now Momentum indicators suggest more pain in the short term USDCAD has been undergoing a strong downside correction from its five-month peak of 1.3693 recorded on September 7. In the last couple of sessions, the pair has been attempting to pierce through both the 200- and 50-day simple moving averages (SMAs), with the latter proving rather resilient. As [..]

Technical Analysis – USDCAD bears still in control

Posted on September 22, 2023 at 7:39 am GMT

USDCAD is in the red today, tests the support of the 200-day simple moving average The mixed momentum indicators complicate the outlook The SMAs’ convergence could open the door to a sizeable move ahead USDCAD is moving lower today after bouncing off the July 14, 2023 upward sloping trendline. The downleg since the September 7, 2023 peak has been impressive but the path appears to be trickier at this stage, especially as the bulls have decided to react more forcefully. [..]

Market Comment – Fed rate decision enters the spotlight

Posted on September 20, 2023 at 8:22 am GMT

Dollar trades cautiously ahead of Fed decision Yen extends slide despite fresh intervention warnings Pound slides after lower-than-expected UK CPI data Wall Street ends in the red as investors turn focus to Fed Will the Fed add fuel to the dollar’s engines? The dollar continued trading in a cautious manner, gaining some ground only against the yen and the franc, while losing the most versus the risk-linked aussie, kiwi, and loonie. It seems that dollar traders prefer not to engage [..]

Technical Analysis – USDCAD extends pull back from 5-month peak

Posted on September 15, 2023 at 7:53 am GMT

USDCAD in an aggressive decline from its 5-month high of 1.3693 Bears eye the crucial 200-day SMA Momentum indicators suggest more pain in the short term USDCAD had staged a massive rebound after finding its feet at the one-year low of 1.3091 in mid-July. However, the pair has been undergoing a downside correction since its rejection at a fresh five-month peak of 1.3693 last week, with short-term oscillators suggesting that sellers have gained total control. If the price extends its retreat, [..]

How will Canadian inflation numbers affect the loonie next week? – Preview

Posted on September 13, 2023 at 3:07 pm GMT

Canadian CPI could further strengthen Bank of Canada prioritizes inflation over growth Loonie could show temporary reaction BoC sees no rate cuts in sight The Bank of Canada (BoC) kept interest rates unchanged at 5.0% earlier this month, making investors think that the tightening cycle has probably run its course. While futures markets expect interest rates to remain stable for the next year, a few investors believe that the central bank could either increase or decrease borrowing costs during that [..]

Technical Analysis – USDCAD corrects lower after eight weeks

Posted on September 12, 2023 at 1:28 pm GMT

USDCAD trims some gains after eight consecutive weeks of gains Level of confidence weakens but uptrend intact Focus stays on 1.3570 USDCAD faced some profit-taking marginally below the 1.3700 round level, erasing some gains to meet support near its 20-day simple moving average (SMA) at 1.3570. The line was last tested on the first trading day of September. The RSI has marked a new lower low above its 50 neutral mark, signifying diminishing buying interest. The negative trajectory in the Stochastic [..]

Technical Analysis – USDCAD rally approaches caution area

Posted on September 8, 2023 at 8:15 am GMT

USDCAD bulls have been in charge for eight weeks in a row, currently aiming to push past the resistance trendline from 2020 that caused a bearish trend reversal in October 2022 and March 2023. Given the overbought signals coming from the RSI and the stochastic oscillator, it’s uncertain whether the pair will manage to extend its uptrend above the tough trendline and the 1.3740 bar. The 78.6% Fibonacci mark of the 1.3976-1.3115 downtrend is nearby at 1.3780 and may attract some interest before all [..]

Market Comment – ISM non-mfg PMI highlights resilience of US economy

Posted on September 7, 2023 at 8:17 am GMT

US service sector unexpectedly gathers momentum ECB officials keep a hike for next week on the table BoE Gov. Bailey says they are ‘much nearer’ to rate peak Wall Street slides as ISM PMI stokes inflation worries Dollar receives boost from ISM non-mfg PMI The US dollar ended Wednesday virtually unchanged against most of the other major currencies, gaining decent ground only against the pound and the franc. The greenback got a strong boost after the ISM non-manufacturing PMI unexpectedly [..]

Will the BoC come to the loonie’s rescue? – Preview

Posted on September 5, 2023 at 3:11 pm GMT

The Bank of Canada (BoC) might move to the sidelines on Wednesday at 14:00 GMT after two rate increases during the summer. Investors are not seeing any additional hikes in the year ahead, but they have not excluded the case entirely. Hence, any clues the central bank could return to the tightening path in the foreseeable future could provide some footing to the loonie. Yet, with the economy fizzling out, the central bank may refrain from boosting rate expectations, likely [..]

Weekly Technical Outlook – AUDUSD, USDCAD, Gold

Posted on September 4, 2023 at 3:13 pm GMT

Central bank meetings in Australia and Canada will shift attention to the aussie and the loonie this week in a relatively important month for monetary policy decisions. The commodity currencies aim to steal ground from the US dollar, while gold is hoping for a bullish breakout too ahead of the ISM non-manufacturing PMI index. RBA rate decision –> AUD/USD The Reserve Bank of Australia meets on Tuesday, with the policy statement expected to move markets at 04:30 GMT. The central [..]

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