|Day's Range||0.764 - 0.767|
|52 Week Range||0.7476 - 0.8290|
USDCAD lost ground on Tuesday as Crude Oil price gained momentum post Saudi Arabia’s production cuts which boosted commodity linked currency Loonie in global market.
Last week was great for the USD. Dollar Index made new long-term highs and the EURUSD broke important supports. On almost all instruments with the USD, we can find interesting setups. Today, we present you the USDCAD, where the buy signal is still relatively fresh.
USDCAD range bound as decline in the Turkish Lira now seems to have come to a pause while bearish factors on Loonie’s end failed to boost US Greenback.
On Friday, the U.S. Dollar Index spiked to its highest level since May 17, 2017 after the Euro plunged against the greenback to its lowest level in more than a year as a steep drop in the Turkish Lira sparked a massive flight-to-safety exodus into the dollar.
USDCAD is expected to continue moving uptrend as USD remains strong in broad market while macro updates scheduled in Canadian calendar today have dovish forecast.
The dollar is also being supported because the U.K. can’t agree on a Brexit strategy. The New Zealand Reserve Bank said earlier today that it won’t raise rates until 2020. The European Central Bank is only preparing its plan to end stimulus and Saudi Arabia is signal handedly weakening the Canadian Dollar by ordering money managers to dump the Loonie.
Although 50-day & 100-day SMA has been restricting the USDCAD moves since last fortnight, the 1.2960-55 support-confluence, comprising 100-day SMA & an ascending TL, could keep indicating the pair’s upside with 1.3060 being immediate resistances to tackle before confronting the 50-day SMA level of 1.3115. Given the pair’s ability to close beyond the 1.3115, the 1.3190 and the downward slanting trend-line, at 1.3215, seem crucial to watch as they hold the door for the quote’s rally towards the 1.3265, the 1.3340 and the 1.3385 resistances.
USDCAD pair is currently stable above 1.3000 handle after decline influenced by Saudi Arabia’s instructions to sell Canadian equities as investors await US inflation & Canadian housing stats/Employment data.
“We expect to keep the OCR at this through 2019 and into 2020, lower than we projected in our May Statement,” RBNZ Governor Adrian Orr said in the opening lines of the statement.
By Fergal Smith TORONTO (Reuters) - The Canadian dollar weakened to a two-week low against its U.S. counterpart on Wednesday but pared its losses as investors decided that the impact on the currency of potential Canadian asset sales by Saudi Arabia will be short-lived. The Saudi central bank and state pension funds have instructed their overseas asset managers to dispose of their Canadian equities, bonds and cash holdings "no matter the cost", after Ottawa criticized the arrest of a female activist, the Financial Times reported, citing sources. "There has been some two-way volatility, indicative of not just price pressures on commodity currencies but also, of course, the headlines about Saudi Arabia," said Bipan Rai, executive director and North America head, FX strategy at CIBC Capital Markets.
Dovish outcome in Canada’s Ivey PMI & range bound crude oil price action helps USD regain upper hand despite USD’s weakness in broad market.
It looks like USDCAD is ready to finish the bearish correction. It looks like EURUSD is getting ready for another bearish wave. Today, sellers crashed this stronghold, which confirms the long-term sell signal created by the double top formation and two shooting stars on the weekly chart.
Crude oil price action and profit booking activity surrounding US Greenback in broad market has favored CAD bulls as USDCAD pair moves below 1.30 handle.
A hawkish Federal Reserve helped drive the greenback higher on Wednesday after the central bank gave an upbeat assessment of the world’s biggest economy and stayed on course to gradually lift interest rates. The U.S. Dollar suffered a slight setback on Friday against a basket of currencies after data showed U.S. job growth slowed in July. Additionally, the greenback also slipped against the Yuan after the Chinese central bank acted to stabilize the currency by stemming speculation against it.
Absence of strong up-moves after the USDCAD’s recent U-turn isn’t a sign of its fresh south-run as 100-day SMA and support-line of short-term descending trend-channel, at 1.2965-60, still stand tall to limit the pair’s decline. In case if the pair refrains to respect the 1.2965-60 support-confluence, more than six-month old ascending trend-line, near 1.2920, followed by the 1.2900 round-figure, could challenge the sellers. Assuming that the quote closes beneath the 1.2900 mark on a D1 basis, then it can plunge to 1.2800 and the 1.2740 support-levels. On the upside, the 1. ...
The pair looks to US NFP & Canadian trade balance data for trigger to breakout from this week’s price range limitations.
USD investors influence volatility of USDCAD pair as Geo-political events weigh down both sides of currency pair.
USDCAD turns range bound ahead of FOMC as both sides of pair lack necessary trigger and momentum to make a breakout move.
This week starts with the weaker USD and stronger EUR but we can see a great situation on the pair other than from the majors’ group – NZDCAD. Since the beginning of July, this pair was locked inside of the symmetric triangle pattern (blue). The volatility was decreasing and we were waiting for a breakout.
It’s been a bullish market for months, but now the promising economic news coming out of Canada is pulling the USD/CAD price back down. From a low in April of around 1.252, the price went as high as 1.338 at the end of June but has been stuttering ever since.
By Fergal Smith TORONTO (Reuters) - The Canadian dollar was little changed against its U.S. counterpart on Friday as the loonie held on to this week's gains even after data showed the U.S. economy expanded at its fastest clip in nearly four years. At 4 p.m. EDT (2000 GMT), the Canadian dollar was trading 0.1 percent higher at C$1.3061 to the greenback, or 76.56 U.S. cents. For the week, the loonie is on track to rise 0.7 percent.
The pair has been trying to build a base over the last couple of days in order to try and move back higher
On the upside, the 1.3045-50 horizontal-line and the 50-day SMA level of 1.3090 could try limiting the pair’s near-term advances, breaking which the 1.3110, the 1.3160 and the 1.3210 might offer intermediate halts before highlighting the 1.3270 trend-line barrier. If at all the quote closes above 50-day SMA level of 1.5290, it can revisit the 1.5320 and the 1.5360 resistances ahead of pushing bulls to aim for the 1.5440, the 1.5470 and the 1.5515 trend-line.