|Day's Range||0.777 - 0.78|
|52 Week Range||0.7251 - 0.8290|
The US dollar rallied against the Canadian dollar, as we are looking to finally break out and test the 1.30 levels above.
USDCAD looks to break through the range and the NFP data later in the day seems to be the ideal opportunity for the bulls to do so
In an unsurprising move, the Bank of Canada decided to hold its benchmark lending rate at 1%, after two small hikes earlier in 2017. The BoC stated on Wednesday that it has decided to keep its target for the overnight rate right where it is, while rate hikes in July and in September continue to work their way through the economy. The central bank commented, “While higher interest rates will likely be required over time, the bank will continue to be cautious, guided by incoming data in assessing the economy’s sensitivity to interest rates, the evolution of economic capacity, and the dynamics of both wage growth and inflation.” The markets had expected the BoC to keep the rate steady but the news saw CAD come under selling pressure, with USDCAD trading up from 1.2660 to just above 1.2800 where it has steadied overnight.
Brexit trouble, a possible U.S government shut down, tax reforms and Merkel’s attempts to form a coalition government are all factors outside of the macroeconomic data for the markets to consider through the day. And let’s not forget about the ongoing investigations into the Trump election campaign.
The rate announcement and statement from the BOC is scheduled for later in the day and this is likely to bring in some volatility in this pair
The US dollar was volatile against the Canadian dollar during the Tuesday session, perhaps trying to carve out a bottom near the 1.27 level.
While more than three-month old descending trend-line has been restricting the EURUSD’s advances, a bit smaller upward slanting TL seems limiting the pair’s near-term declines. However, the RSI is around overbought region and the US tax-plan is about to become a law, which in-turn indicates the pair’s downside. Hence, a daily close below the 1.1845 trend-line can act as a trigger to quickly fetch the pair towards 1.1800 and then to the 50-day SMA level of 1.1755. Given the quote continues declining beneath 1.1755, the 1.1685 and the 1.1660 could please sellers. ...
The USDCAD pair continues to trade near the lows of its range as it has been caught in a 200 pip range between the 1.26 and 1.28 region over the last few weeks. For now, the pair seems to be forming a base for its next move towards the highs of its range and with us in the last month of the year, we believe that the liquidity would dry up as we get closer to the middle of the month as more and more traders begin to go on a holiday. This week, we have a range of news which is likely to bring in some volatility.
After threatening to break through higher in the middle of the week, the USDCAD pair settled lower for the week in what turned out to be a volatile period for the pair. The pair has been in a consolidation and ranging mode over the last few weeks and for a brief while last week, it did seem that the bulls had finally found a break through as the pair made its way through the 1.28 region on the back of dollar strength and CAD weakness. The dollar strength came about due to the smooth passage of the tax reform bill through the Senate and it looks as though Trump would finally have his way as far as the bill is concerned.
The US dollar continues to grind sideways against the Canadian dollar and what I believe is a reflection of the uncertainty in the oil markets.
The USDCAD corrected lower during the course of trading yesterday after trying to breach through 1.29 during the day. The breakout that we saw in the pair, after a couple of weeks of consolidation and ranging, seems to be holding for now though there has not been any major volatility or violent moves in the pair so far. This pair has been holding steady over the last few days and the moves have been pretty decent with no major volatility.
The US dollar continues to rally against the Canadian dollar, and it looks very likely that we are going to continue to go looking towards the next major level, the 1.30 handle.
The US dollar initially went sideways against the Canadian dollar during the trading session on Wednesday, but found enough support at the 1.28 level to continue going higher, and reached towards the 1.2850 level. With the Crude Oil Inventories number coming out a little bit more bullish than anticipated, we did get an initial pull back, but the 1.28 level has been proven to be supportive.
The USDCAD has finally broken out of the range after threatening to do so for many days over the last few weeks. It had been quite volatile over the last week or so on the back of the waxing and waning of the dollar strength and also the volatility in the oil prices and it looked as though the breakout was around the corner though the market did not know in which direction the breakout would be in. The driver for this move seems to have come from the oil prices which are under pressure due to reports that say that the oil producers may not continue the production cut during 2018.
If the pullback extends beneath 1.3240, the 1.3200 and the 1.3175 may offer intermediate halts during the pair’s dip towards testing 1.3120 support-line. Should sellers keep fetching the prices southwards after conquering the 1.3120 TL, a bit broader ascending trend-line, at 1.3035 now, may challenge the bears, if not then the 1.2950-45 area can reappear on the chart. Meanwhile, pair’s D1 close above 1.3340 can be considered as a trigger for its advances in direction to 1.3440 and then to the 1.3460, break of which may enable buyers to aim for 1.3550 and the 1.3600 round-figure.
USDCAD higher rose higher as we had mentioned in our forecast yesterday. One of the reasons for the dollar weakness was the fact that the US was on a holiday on account of Thanksgiving and hence the liquidity was pretty much low. This is what happened in the markets yesterday as some dull and consolidative trading during the Asian and London sessions gave way to dollar buying during the latter half of the day which helped the USDCAD pair to push through 1.2750 and it trades in that region as of this writing.
The US dollar initially rallied against the Canadian dollar during the week, but found enough trouble to turn around and form a bit of a shooting star. The 1.27 level underneath continues to be supportive though, so I think that we will struggle to break down. However, if we break down below the range of … Continue reading USD/CAD Price forecast for the week of November 27, 2017, Technical Analysis
The USDCAD pair ended the week lower on the back of the weakness in the dollar but it was still well within the range as far as this pair was concerned. This shows the underlying weakness in the CAD as well and this ensured that the pair did not break through the lows of the … Continue reading USD/CAD Fundamental Analysis – week of November 27, 2017
The US dollar was initially sideways against the Canadian dollar during the trading session on Thursday, bouncing around the 1.27 level. We broke down slightly, but then broke well above that level again. I think a lot of the move was due to the lack of volume when it comes to the pair, as the … Continue reading USD/CAD Price Forecast November 24, 2017, Technical Analysis
The USDCAD pair crashed lower yesterday on the back of some steady weakness in the dollar during the course of the day. It turned out to be a bad day for the dollar which only got worse after the FOMC minutes were released late in the day. The weakness in the dollar helped to push … Continue reading USD/CAD Daily Fundamental Forecast – November 23, 2017
The USDCAD pair ended the day slightly lower from the highs of its range after threatening to break through the highs during the course of the day. It did break through the 1.28 region for a brief while and even threatened to make it a full fledged break through but the upcoming FOMC minutes seems … Continue reading USD/CAD Daily Fundamental Forecast – November 22, 2017
The US dollar has been extraordinarily volatile against the Canadian dollar during the trading day on Tuesday. Because of this, the market is likely to cause a lot of trouble for traders who can handle the volatility, but I think that longer-term we still have plenty of buying pressure underneath, as on the hourly chart … Continue reading USD/CAD Price Forecast November 22, 2017, Technical Analysis
EUR/USD With the 1.1860-65 horizontal-line again restricting the EURUSD’s upside, the pair dipped below 100-day SMA on Monday and is presently aiming to re-test the 1.1660-65 support-zone. Should the pair continue declining below 1.1660, the 1.1620 and the 1.1580 are likely consecutive rests that it may avail ahead of meeting the 1.1550-55 area, which if … Continue reading Technical Update For EUR/USD, USD/JPY, USD/CAD & NZD/USD: 21.11.2017