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USDCAD Analysis Week commencing 10/12/2017

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  • USDCAD Analysis Week commencing 10/12/2017

    USDCAD Analysis Week commencing 10/12/2017

    The prior weekly candlestick was a bullish hammer engulfing the 5 previous weeks and breaking monthly resistance 1.2800. This is the first candle in the 6-week range to break the monthly resistance. The weekly 8MA has also crossed over the 18MA. With the candle being an MA break a wick rejection. Potentially a bullish week ahead, especially if price breaks out of the box range and breaks the daily level to the upside. However, price could reject the level retrace back down to the lower bound of the range which is below the monthly level.

  • #2
    The loonie continued to strengthen against a weak greenback on Thursday, pulling back from an earlier four-month high, after comments by U.S. President Donald Trump helped boost the U.S. dollar. The remarks by the U.S. President helped the pair to rebound over 100-pips from an intraday low near the 1.2280 region, erasing a move lower in the aftermath of upbeat Canadian core retail sales figures. Today sees two major economic releases which will influence the direction of USDC/AD.

    The main release is Canadian inflation data (CPI) for December, which has the potential to impact on interest rate expectations, and from there the value of the Canadian dollar. Higher inflation means higher interest rates, which will result in a stronger oonie. Official market estimates expect headline CPI to come out at 1.9% from 2.1% previously, whilst month-on-month, the forecast is a fall of -0.3% from a gain of 0.3% previously. Also due is the advance 4Q U.S. Gross Domestic Product (GDP) report, expected to show an increase of 3.0%, which should influence the USD price and provide some fresh impetus.

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    • #3
      The USD/CAD pair's mid-European session recovery tilt toward fizzled stuffy the 1.2780 level, back bears now exasperating to appendix it through mid-1.2700s retain a place.

      Against the backdrop of a follow-through US Dollar retracement slide, the ongoing bullish run in sloppy oil prices underpinned the commodity-associated currency - Loonie and kept exerting downward pressure re speaking the major for the second consecutive session.

      Meanwhile, a subdued dogfight regarding the US Treasury holds yields did tiny to revive the USD request and stall the pair's downfall protection going on closer to a trenchant sound merger close the 1.2750 regions.

      It, however, remains to be seen if the pair continues finding some buying achievement close the mentioned merger or extends its bearish slide through the NY trading session in addition to absent manage to pay for upsetting economic releases from the US and Canada.