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.

Free Trading Guides
EUR/USD
Bullish
GBP/USD
Bearish
USD/JPY
Mixed
Gold
Bearish
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
Bearish
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
Bitcoin
Mixed
More View more
Real Time News
  • Selling pressure has seen the #DAX30 slip beneath its 200-day simple moving average just four days after it was establishing new records. Get your European equities update from @PeterHanksFX here: https://t.co/eMFqi8NKfr https://t.co/2tXGaBgUns
  • Risk events over the next two days (threaded tweet) from our own @ZabelinDimitri - when we're in that risk on/off mode, pretty much any of these can matter https://t.co/83dLD1J4Ku
  • Banxico Governor Diaz: - Not many economies have faced same uncertainties as mexico in recent years - BBG $USDMXN
  • Highly recommend checking this out ⬇️ https://t.co/mBHn9w6rUC
  • RT @ZabelinDimitri: Feb 27: - Bank of Korea🇰🇷 rate decision - French🇫🇷 President Macron meets with Italian🇮🇹 Prime Minister Guiseppe Conte…
  • Banxico Deputy Governor Esquivel: - Banxico needs to figure out if rate cuts should continue - BBG
  • The 10-Year US Treasury yield hits new all-time low as coronavirus fears continue $TNX
  • Commodities Update: As of 19:00, these are your best and worst performers based on the London trading schedule: Gold: 0.69% Oil - US Crude: 0.00% Silver: -0.15% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/yXLFp7Regh
  • GOP Leader McCarthy says 4 billion needed for coronavirus, White House 2 billion figure is a little too low - BBG
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.69%, while traders in USD/CAD are at opposite extremes with 71.27%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/zPQWnGyNVL
USD/CAD Risks Further Losses Despite Cautious BoC

USD/CAD Risks Further Losses Despite Cautious BoC

2016-04-19 17:02:00
David Song, Currency Strategist
Share:

Talking Points:

- USD/CAD Risks Further Losses Despite Cautious Bank of Canada (BoC) Testimony.

- USDOLLAR Downside Targets Remain Favored as U.S. Data Prints Disappoint.

Avoid the pitfalls of trading by steering clear of classic mistakes. Review these principles in the "Traits of Successful Traders" series.

USD/CAD

USD/CAD Daily Chart

Chart - Created Using FXCM Marketscope 2.0

  • USD/CAD stands at risk for further losses as the pair largely preserves the downward trend from earlier this year, while the Relative Strength Index (RSI) flirts with oversold territory; break below 30 in the oscillator may highlight a pickup in the bearish momentum.
  • Even though the Bank of Canada (BoC) warns that there remains ‘plenty of excess capacity,’ Governor Stephen Poloz may endorse a wait-and-see approach throughout 2016 as the central bank head argues monetary policy will have the ‘least impact’ when rates are near zero.
  • USD/CAD may continue to mark fresh monthly lows over the days ahead, with a break/close below 1.2620 (50% retracement) opening up the next downside region of interest coming in around 1.2510 (78.6% retracement) to 1.2550 (38.2% expansion).
USD/CAD SSI
  • The DailyFX Speculative Sentiment Index (SSI) shows the retail FX crowd has flipped back net-long USD/CAD on April 8, with the ratio hitting an extreme reading earlier this month as the ratio spiked above +2.00.
  • The ratio currently stands at +1.94 as 66% of traders are currently long, with short positions 3.0% higher from the previous week, while opening interest stands 4.2% above the monthly average.

Why and how do we use the SSI in trading? View our video and download the free indicator here

Join DailyFX on Demand for Real-Time SSI Updates Across the Majors!

USDOLLAR(Ticker: USDollar):

Index

Last

High

Low

Daily Change (%)

Daily Range (% of ATR)

DJ-FXCM Dollar Index

11799.04

11838.37

11787.86

-0.30

88.64%

USD/CAD Risks Further Losses Despite Cautious BoCUSDOLLAR Daily Chart

Chart - Created Using FXCM Marketscope 2.0

  • The USDOLLAR remains vulnerable to further losses as the dismal Housing Starts & Building Permits report dampens the outlook for growth and inflation, which may encourage the Federal Reserve to further delay its normalization cycle.
  • Signs of a slowing recovery may continue to drag on interest rate expectations ahead of the Federal Open Market Committee’s (FOMC) April 27 interest-rate decision especially as Chair Janet Yellen appears to be in no rush to implement higher borrowing-costs.
  • A closing price below 11,826 (61.8% expansion) raises the risk of seeing a move into the next downside region of interest around 11,745 (50% retracement) to 11,759 (23.6% retracement).
USD/CAD Risks Further Losses Despite Cautious BoC

Click Here for the DailyFX Calendar

Read More:

US DOLLAR Technical Analysis: Retesting 2016 Lows

EUR/JPY Technical Analysis: The Negative Rate Trend Line is Back

EUR/USD and USD/CHF Outside Weeks at Well-Defined Levels

Big Test For Spoos, Big Test For the Markets

Get our top trading opportunities of 2016 HERE

--- Written by David Song, Currency Analyst

To contact David, e-mail dsong@dailyfx.com. Follow me on Twitter at @DavidJSong.

To be added to David's e-mail distribution list, please follow this link.

Trade Alongsidethe DailyFX Team on DailyFX on Demand

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

DISCLOSURES

News & Analysis at your fingertips.