News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Oil - US Crude
Mixed
Wall Street
Mixed
Gold
Bullish
GBP/USD
Mixed
USD/JPY
Mixed
More View more
Real Time News
  • The bull flag pattern is a great pattern to add to a forex trader's technical arsenal. Explosive moves are often associated with the bull flag. Learn more about the bull flag pattern here: https://t.co/yOEvLjKnct https://t.co/Fkhzl5OPXg
  • 🇲🇽 Unemployment Rate (DEC) Actual: 3.8 Expected: 4.3% Previous: 4.4% https://www.dailyfx.com/economic-calendar#2021-01-21
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 100.00%, while traders in Wall Street are at opposite extremes with 70.59%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/fRoUoqtGbc
  • Heads Up:🇲🇽 Unemployment Rate (DEC) due at 12:00 GMT (15min) Expected: 4.3% Previous: 4.4% https://www.dailyfx.com/economic-calendar#2021-01-21
  • Commodities Update: As of 11:00, these are your best and worst performers based on the London trading schedule: Silver: 0.31% Gold: 0.02% Oil - US Crude: -0.82% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/Kn8mdyS57Y
  • Forex Update: As of 11:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.53% 🇬🇧GBP: 0.43% 🇦🇺AUD: 0.27% 🇨🇭CHF: 0.18% 🇯🇵JPY: 0.10% 🇨🇦CAD: 0.03% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/mwWxyHchSd
  • Euro’s forecast this quarter? Get your free forecast here: https://t.co/kpBYVz31Bd #DailyFXGuides https://t.co/Im099ElT61
  • Indices Update: As of 11:00, these are your best and worst performers based on the London trading schedule: Germany 30: 0.49% US 500: 0.24% Wall Street: 0.16% FTSE 100: 0.14% France 40: -0.07% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/rsPhYcZW22
  • #HSI Hang Seng Index finished slightly below 30,000 mark as Southbound net flow via the stock connections fell three days in a row to HK$ 16,263 million, from a record high of 26,592 million on Jan 19th. Total southbound flows contributed to 31% HKEX's daily turnover on Thur. https://t.co/YkxXUHEFRa
  • Greed is a natural human emotion that affects individuals to varying degrees. Unfortunately, when viewed in the context of trading, greed has proven to be a hindrance more often than it has assisted traders. Learn more about controlling greed here: https://t.co/5GXReUsKRj https://t.co/edSSfv0SfT
Canadian Dollar: Loonie Decimated, USD/CAD Gaps to Two-Year-Highs

Canadian Dollar: Loonie Decimated, USD/CAD Gaps to Two-Year-Highs

James Stanley, Strategist

Canadian Dollar, USD/CAD, Loonie Talking Points

  • USD/CAD gapped-up to fresh two-year-highs this morning.
  • The brutal sell-off in Oil is further contributing to CAD-weakness.
  • While the US Dollar has been extremely weak, the Canadian Dollar has remained even weaker, keeping the door open to bullish strategies there.

Canadian Dollar Slammed on the Open, USD/CAD to Fresh Highs

This is the type of morning when there’s so much to write about or analyze for trading setups that it can be difficult to pick out just one or two markets to work with. But, in the FX space, few pairs are as interesting as USD/CAD and there are a number of reasons for this. Perhaps first and foremost, this is one of the few major currency pairs that’s actually showing USD-strength. Secondly, given that profound weakness in the Canadian Dollar, there may be room for more, especially with the hit that’s being seen in Oil markets around-the-world. And, perhaps most importantly, The pair continues with a trend that’s remained fairly consistent so far in 2020 trade, which is a trend of strength; as most other markets have already exhibited some form or reversal or snap back, USD/CAD has been fairly consistent, by and large.

After coming into 2020 trading below the 1.3000-handle, buyers have come back, in droves, to push prices up to a fresh two-year-high, intersecting with the resistance zone that capped the top in May of 2017 around the 1.3750-1.3800 area on the chart.

USD/CAD Weekly Price Chart

USDCAD USD/CAD Weekly Price Chart

Chart prepared by James Stanley; USDCAD on Tradingview

USD/CAD Gap-and-Go

As looked at over the past few weeks, perhaps the most interesting aspect of USD/CAD is the fact that this is one of the very few pairs that’s showing some element of USD-strength. This stands in stark contrast to pretty much every other major currency pair such as EUR/USD, GBP/USD, USD/JPY, etc. This denotes how the Canadian Dollar has been even weaker than its US cousin and, by and large keeps the door open for themes of continuation.

I had looked into breakout potential in USD/CAD just a couple of weeks ago and that breakout has continued to fill-in. At this point, price action is not only overbought but there’s a large gap remaining on the chart: Setting up a daunting backdrop for continuation at the moment.

For those looking to add long exposure in the pair, waiting for this gap to get filled and, perhaps even looking for some support around prior resistance may be an attractive manner of address. As of this writing, there’s approximately 133 pips of unfilled gap on the USD/CAD price chart.

USD/CAD Four-Hour Price Chart

USDCAD Four Hour Price Chart

Chart prepared by James Stanley; USDCAD on Tradingview

--- Written by James Stanley, Strategist for DailyFX.com

Contact and follow James on Twitter: @JStanleyFX

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES