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- Friday, 16 October 2009 20:19:30 GMT FX Technical Weekly
- Friday, 16 October 2009 15:38:06 GMT Australian & New Zealand Dollar Outside Days Warn of Reversals
- Friday, 16 October 2009 09:48:52 GMT Euro Finding Offers Ahead of 1.5000; Kiwi Sell Recommendation Issued (Morning Slices)
- Thursday, 15 October 2009 14:32:51 GMT British Pound Surges into Fibonacci Resistance
- Thursday, 15 October 2009 05:24:16 GMT Sterling Finally Plays Catch-Up (Morning Slices)
- Thursday, 15 October 2009 07:56:53 GMT EUR/USD Sell Recommendation Issued @1.5035 (Daily Classical)
- Wednesday, 14 October 2009 14:56:16 GMT US Dollar Slips Lower; Euro Resistance Line at 1.5000 Today
- Wednesday, 14 October 2009 06:46:55 GMT Euro Surge Exposes Psychological Barrier (Daily Classical)
- Tuesday, 13 October 2009 18:19:16 GMT New Zealand Dollar Shows Reversal Characteristics
- Tuesday, 13 October 2009 07:47:43 GMT Euro Double Top Prospects Intact (Daily Classical)
- Monday, 12 October 2009 14:39:22 GMT Canadian Dollar Reaches Measured Objective Above 1.0300
- Monday, 12 October 2009 07:35:23 GMT Euro Carving Double Top (Daily Classical)
- Monday, 12 October 2009 07:35:23 GMT Euro Carving Double Top (Daily Classical)
- Friday, 09 October 2009 21:51:30 GMT FX Technical Weekly
- Friday, 09 October 2009 08:17:49 GMT British Pound Consolidates, Euro Hints Double Top Against US Dollar
- Thursday, 08 October 2009 14:42:21 GMT Dollar Fear Escalates as Prospect of a Panic Decline Emerge
- Thursday, 08 October 2009 06:28:39 GMT Prospects Fade for USD Bulls (Daily Classical)
- Wednesday, 07 October 2009 14:32:02 GMT Dollar Fights Back-AUD and NZD Reach Early 2008 Prices
- Wednesday, 07 October 2009 06:41:58 GMT Euro Stops Narrowly Averted (Daily Classical)
- Tuesday, 06 October 2009 18:26:25 GMT EUR/GBP Failure at Resistance Provides Scalping Opportunity
Falling oil prices paired with increased demands for the U.S. dollar continues to favor a bullish outlook for the USDCAD, and we may see the pair work its way back to the October highs over the near-term.
Currency Pair: USD/CAD
Chart: 60 Min Charts
Short-Term Bias: Bullish
Analysis Update
The USDCAD pushed higher during the last few hours of trading, and may work its way towards 1.2679 (78.6% Fib level) as the U.S. dollar continues to reap the benefits of its safe haven status. However, the increasing gap from the 120 SMA paired with the rise in the RSI suggests that the pair will pullback over the next day or so, and may test the 61.8% Fib retracement level for short-term support. Nevertheless, increased buying pressures for the greenback continue to favor a bullish outlook for the pair, and we may see pair to move higher over the following week to test the October highs. However, the fundamental event risks scheduled for the next 24 hours may call for a change in our outlook.
Analysis
Falling oil prices paired with increased demands for the U.S. dollar continues to favor a bullish outlook for the USDCAD, and we may see the pair work its way back to the October highs over the near-term. After reaching a high of 1.3020 in October, the pair pulled back to find short-term support near 1.1460-70 at the beginning of the month, but has surged higher to cross above 1.2423 (61.8% Fib retracement level) during the last 24 hours of trading. Over the following week, we may see the pair work its way towards 1.2679 (78.6% Fib retracement level, but the divergence from the 120 SMA suggests that the pair may pull back once again before moving higher. Be sure to check out other Technical Reports from DailyFX for additional information on the major currency pairs.
To contact the author of this article, please email: dsong@fxcm.com
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