|Day's Range||0.799 - 0.802|
|52 Week Range||0.7251 - 0.8290|
The US dollar has been volatile during the week, but as we close out the Friday session, it looks as if the market doesn’t know where to go next, in relation to the Canadian dollar. I think that the market continues to be difficult for longer-term traders, as there are so many moving pieces.
The USDCAD pair had a day of huge volatility as the prices bounced and turned within a large range of 200 pips during the day yesterday. This was something that was expected and we had also mentioned as much in our forecast yesterday as the BOC was out with its rate announcement and statement yesterday and the prices jumped around following the announcement but ultimately settled down near the prices that it started the day with. The BOC hiked rates once again though it was only a month back or so that the BOC governor Poloz said that he did not have a timeline for the next rate hike.
It has been more than two days that the USDCAD is still clubbed in a small range between 1.2470 and the 1.2395 as Loonie traders are waiting for the Bank of Canada’s much anticipated rate-hike and the Governor’s press conference. Should the BoC manage to please CAD buyers with upbeat statement and Federal Reserve-like three rate-lifts a year promise, the USDCAD can plunge beneath the 1.2395 and quickly test the recent low of 1.2355. Alike USDCAD, the CADJPY moves are also confined in a range between 100-day and 50-day SMA levels of the 89.15 and the 88.60 respectively.
Sometimes you can hear people saying: ‘another day, another dollar’ when referring to their work duties and approach etc. On the market, we could be saying now: ‘another day, weaker dollar’. Real troubles started here in the middle of December and since that, the USDCAD made three bearish weekly candles, one small bullish correction and we start again with a significant drop, drawing a black body.
The pair had a volatile week as the fundamental developments and incoming data pushed and pulled the pair in different directions
The US dollar has rallied against the Canadian dollar during most of the week, but as you can see, only to fill a gap. At this point, the next move becomes a bit difficult.
The US dollar has gone sideways against the Canadian dollar during the trading session on Friday, which is interesting considering how be not the US dollar was against so many other currencies.
While inability to break 1.2415-10 horizontal-region on a daily closing basis triggered the USDCAD’s pullback, 100-day SMA level of 1.2590 seems presently restricting the pair’s up-moves. Should the pair surpasses the 1.2590 cap, it can confront the 1.2660-65 area, which if broken could help the buyers to target 50-day SMA level of 1.2720. In case if the pair fails to rally beyond 1.2590 at Day’s close, chances of its drop to 1.2500 and then to the 1.2450 become brighter but the 1.2415-10 might limit the quote’s additional downside. Given the sellers manage to drag prices beneath 1. ...
The U.S. Dollar was volatile against a basket of currencies on Wednesday as investors reacted negatively to a report that China was ready to slow or halt its purchases of U.S. Treasuries.
The US dollar drifted a little bit higher during the trading session on Tuesday, in a relatively quiet trading. The Canadian dollar has recently seen a significant surge in value, based not only upon the oil markets, but also the jobs report coming out of Canada being much better than anticipated.
The US dollar gapped lower against the Canadian dollar at the open of the week, then went sideways for most of the time, only to break down after the disappointing jobs number out of America, coinciding with a strong employment number out of Canada.
Having failed to sustain its bounce from more than three-month old ascending trend-line, the USDCAD seems declining to re-test the 1.2500 TL support, break of which could trigger the pair’s fresh south-run towards 1.2460 but the 1.2415-10 horizontal-line might confine its following downside. On the contrary, the 1.2560 and the 100-day SMA level of 1.2600 can act as immediate resistances to cap the pair’s advances, breaking which it can rise to 1.2620 and then to the 1.2665 north-side numbers. Meanwhile, a downside break of 1.5050 can have the 1.5015 as intermediate halt prior to resting on the 1.4990 horizontal-line, which if broken could further drag the pair to 1.4950 and then to the 1.4920-15 area.
The US dollar fell significantly against the Canadian dollar during the week, reaching down towards the vital 1.25 handle. Because of this, we may have a very interesting week ahead of us.
The US dollar fell again against the Canadian dollar on Friday, as we continue to see weakness in this pair. The 24-hour exponential moving average has been very reliable over the last 4 sessions, as we find ourselves pressing a very significant support levels underneath.
The US dollar has fallen against the Canadian dollar again during the trading session on Thursday, breaking below the 1.26 handle during the day, but then bouncing back towards it again.