FX:USDCAD   U.S. Dollar / Canadian Dollar
The recent risk rally has encouraged commodity currencies higher. As crude ignores the globalized downturn in economic output and ongoing "pump at all costs" mantra of producers, the Canadian dollar             has hit a three-month high against the dollar.

Crude aside, traders have also factored in the fact that the potential for a rate cut from the Bank of Canada had dropped from 60 to 32 percent. Nevertheless, on a macro-standpoint, the slowdown in both the US and Canadian economies will strengthen; and traders could ditch the loonie for the save-haven greenback.

The recent strength in the CAD does allow a more balance, two-way market. We are likely to see the USDCAD             continue trending lower until risk appetite wanes.

Price action has broken the upward trend that has lasted since May 2015. Support at 1.34 will likely be challenged prior to testing the 200-day EMA . The 20-day EMA has bearishly crossed the 50- and about to cross the 72-day EMA .

The only problem I see with the current down move is: volume is increasingly dropping off and the pair is no longer overbought on longer time frames. This could cause traders to re-enter longs if the risk environment wanes causing a move back to 1.3770.

Sentiment around crude and equities will remain important.

Please feel free to comment and share charts! And follow me @Lemieux_26

Check my posts out at:

a little bit more?
+1 Reply
EN English
EN English (UK)
EN English (IN)
DE Deutsch
FR Français
ES Español
IT Italiano
PL Polski
SV Svenska
TR Türkçe
RU Русский
PT Português
ID Bahasa Indonesia
MS Bahasa Melayu
TH ภาษาไทย
VI Tiếng Việt
JA 日本語
KO 한국어
ZH 简体中文
ZH 繁體中文
AR العربية
Home Stock Screener Forex Signal Finder Cryptocurrency Signal Finder Economic Calendar How It Works Chart Features House Rules Moderators Website & Broker Solutions Widgets Stock Charting Library Feature Request Blog & News FAQ Help & Wiki Twitter
Profile Profile Settings Account and Billing My Support Tickets Contact Support Ideas Published Followers Following Private Messages Chat Sign Out