All Articles Tagged - USDCAD

Technical Analysis – USDCAD confirms bearish trend reversal

Posted on November 11, 2022 at 8:36 am GMT

USDCAD completed a bearish head and shoulders structure following the rejection near the 50-day simple moving average (SMA) and the crash below the 1.3500 neckline on Thursday. The price marked a new two-month low of 1.3291 on Friday, stretching its losses below the crucial long-term resistance line and the 50% Fibonacci retracement of the 2020-2021 steep downtrend at 1.3330. Despite the freefall, the technical oscillators signal that the sell-off is not over yet. Particularly, with the MACD gaining extra negative momentum within the [..]

Technical Analysis – USDCAD struggles to gain ground after sharp sell-off

Posted on November 8, 2022 at 2:01 pm GMT

USDCAD is struggling to gain positive momentum after its fast sell-off on Friday, driving the market beneath the 20- and 50-day simple moving averages (SMAs) and the 1.3505 barrier. The downside reversal in the RSI and the slowdown in the MACD justify the diminishing buying pressure, though both remain near their neutral thresholds keeping the short-term risk skewed to the downside. Should selling forces strengthen, the 1.3420 barrier will come under the spotlight. The 1.3225 resistance could initially turn to support to keep the [..]

Technical Analysis – USDCAD forms bearish head and shoulders pattern

Posted on November 4, 2022 at 2:44 pm GMT

Technical Analysis – USDCAD forms a bearish head & shoulder pattern USDCAD slumped in the wake of upbeat Canadian employment data and a surprise rise in the US unemployment rate on Friday, marking a daily loss of around 1.7%. The aggressive bearish action squeezed the RSI below its 50 neutral mark, pressing the stochastics to the south as well. The MACD, which has been weakening below its red signal line for almost a month, lost momentum too. In trend signals, [..]

Daily Market Comment – Stocks pare post-Fed losses ahead of NFP on China hopes; BoE sinks pound

Posted on November 4, 2022 at 10:22 am GMT

Dollar off highs, stocks turn positive as China reopening chatter lifts mood But NFP report could bring Fed tightening fears back into the fore Pound left reeling after BoE hikes big, warns of long recession Hopes of China reopening ease Fed gloom The run-up to the Fed meeting and its aftermath was a rollercoaster ride that didn’t end well for stocks. Investors hoping for a dovish pivot instead got a Fed chief leaning further towards the hawkish end of the [..]

Technical Analysis – USDCAD pauses rebound as positive momentum weakens

Posted on November 4, 2022 at 8:39 am GMT

USDCAD has been in a steep uptrend since mid-September, storming to a fresh 29-month high of 1.3976 before experiencing a moderate pullback. Although the pair managed to recoup some losses after finding its feet at the 1.3500 region, the recent recovery appears to be running out of juice. The momentum indicators currently suggest that bullish forces are waning. Specifically, the MACD histogram remains beneath its red signal line but in the positive territory, while the stochastic oscillator is pointing downwards after [..]

Canadian employment report may drive loonie even lower – Forex News Preview

Posted on November 1, 2022 at 2:51 pm GMT

The Canadian employment data will be released on Friday at 12:30 GMT and will be the main focus for the loonie. The Bank of Canada decided to lift its overnight rate by 50 basis points, to 3.75% at its meeting in October, with the Canadian economy shedding employment during the summer which is the opposite of what was anticipated. BoC raises rates for the sixth consecutive time Even though most people were expecting a more aggressive hike of 75 bps, the Bank of Canada only [..]

Technical Analysis – USDCAD extends retreat after hitting 29-month high

Posted on October 28, 2022 at 7:51 am GMT

USDCAD has been in a steep uptrend since mid-September when the price managed to forcefully cross above the 1.3222 region. Although the pair recently spiked higher to a fresh 29-month high, it quickly lost some ground, hinting that its latest rally could be overstretched. The momentum indicators currently suggest that bullish forces are waning. Specifically, the RSI has fallen marginally below its 50-neutral mark, while the MACD histogram has dived beneath its red signal line but remains in the positive territory. [..]

Daily Market Comment – Dollar extends slide; ECB and BoJ take center stage

Posted on October 27, 2022 at 8:34 am GMT

US dollar drops more on receding bets of Fed rate hikes Euro reclaims parity ahead of ECB decision BOJ expected to maintain ultra-loose strategy EU shares gain but Wall Street falls on disappointing earnings Dollar adds to losses as BoC shift adds to speculation of a Fed pivot The US dollar kept sliding yesterday on firmer views that the Fed will slow the pace of its interest rate hiking cycle. Following Tuesday’s disappointing data, market participants may have become more [..]

Daily Market Comment – Dollar slides and equities extend gains on bets for less hawkish Fed

Posted on October 26, 2022 at 8:30 am GMT

Dollar slides as US data disappoints Pound gains on Sunak’s pledges, Aussie up on CPIs Wall Street adds to gains on bets of slower Fed hike pace Dollar loses more ground on less aggressive Fed hopes The US dollar underperformed against all the other major currencies on Tuesday as weak data added to hopes that the Federal Reserve may need to slow its aggressive pace of interest rate hikes. US single-family house prices fell sharply for the second consecutive month [..]

Will the BoC satisfy expectations of another triple hike? – Forex News Preview

Posted on October 21, 2022 at 12:06 pm GMT

On Wednesday at 14:00 GMT, the BoC will decide on monetary policy, with market participants raising bets of a 75bps hike after the inflation numbers for September, despite economists’ consensus staying at 50bps. However, the size of the rate hike may not be the only focal point. Investors may also be eager to find out how officials are planning to move forward. Inflation revives bets of a 75bps hike At its September meeting, the BoC raised interest rates by 75bps, [..]

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