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
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
GBP/USD
Bullish
USD/JPY
Mixed
Gold
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
Bullish
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
Bullish
More View more
Real Time News
  • BREAKING: #GBP sharply lower as DUP says can't support UK gov't on #Brexit deal. Stock index futures down. Yields lower, boosting #gold. Anti-risk #USD and #JPY up. https://t.co/cEbhG5mI9o
  • The Swedish #Krona and Norwegian #Krone will be in for a tense week ahead of #Brexit-related drama and a crucial EU summit which could be a turning point for the EU-UK divorce. Get your market update from @ZabelinDimitri :https://t.co/zjTNQmDHTt https://t.co/fpXoGsdMt7
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.26%, while traders in France 40 are at opposite extremes with 83.32%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/2T2DkNIQIK
  • Australian Dollar and ASX 200 Trend Hinges on RBA, Fed Rate Cuts - https://www.dailyfx.com/forex/fundamental/article/special_report/2019/10/17/Aussie-Dollar-and-ASX-200-Trend-Hinges-on-RBA-Fed-Rate-Cuts.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Spivak&utm_campaign=twr #AUDUSD #ASX
  • Forex Update: As of 04:00, these are your best and worst performers based on the London trading schedule: 🇦🇺AUD: 0.39% 🇨🇭CHF: 0.17% 🇳🇿NZD: 0.10% 🇯🇵JPY: -0.00% 🇨🇦CAD: -0.02% 🇬🇧GBP: -0.09% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/fV2xxEk8ml
  • Indices Update: As of 04:00, these are your best and worst performers based on the London trading schedule: US 500: -0.02% Wall Street: -0.16% France 40: -0.20% Germany 30: -0.23% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/v10gfIXweU
  • #CAC: A consolidation, then breakout could provide a platform for fresh longs. In the event of higher prices, there isn’t anything until a swing high from late-2007 located at 5865. Get your market update from @PaulRobinsonFX https://t.co/XqtCnj89qG
  • Overnight index swaps are pricing in an 84.2% probability that the #fed will cut rates during its next meeting on 10/30/2019. #USD #Fed
  • Longer-term Elliott wave forecast for $EURUSD - 1.18? 1.25? https://www.dailyfx.com/forex/technical/elliott_wave/eur-usd/2019/10/01/eur-forecast-large-rally.html
  • Asian equities update: Nikkei 22503.97 (+0.14%), Hang Seng 26891.76 (+0.86%), CSI 300 3928.88 (-0.16%). [Delayed]
USD/CAD Capped by Channel Resistance; 1.3300 Hurdle in Focus

USD/CAD Capped by Channel Resistance; 1.3300 Hurdle in Focus

2016-11-08 17:20:00
David Song, Currency Strategist
Share:

Talking Points:

- USD/CAD at Risk for Larger Pullback as Outlook Remains Clouded With Mixed Signals.

- Japanese Yen Weakness Persist With All Eyes on U.S. Presidential Election.

DailyFX

Currency

Last

High

Low

Daily Change (pip)

Daily Range (pip)

USD/CAD

1.3337

1.3391

1.3325

27

66

USD/CAD Daily

USD/CAD Daily Chart

Chart - Created Using Trading View

  • Longer-term outlook remains constructive as USD/CAD preserves the upward trending channel from earlier this year, but the pair stands at risk for a near-term pullback following the failed attempt to break above 1.3460 (61.8% retracement), while the Relative Strength Index (RSI) remains capped by the bearish formation carried over from the summer months; will keep a close eye on the former resistance-zone around 1.3300 (61.8% expansion) to 1.3310 (38.2% retracement) for support.
  • With the Federal Open Market Committee (FOMC) preparing U.S. households and businesses for a December rate-hike, the cautious tone struck by the Bank of Canada (BoC) may continue to favor a bullish outlook going into the year ahead amid the deviating paths for monetary policy; however, the FOMC may continue to endorse a ‘gradual’ path in normalizing monetary policy as Chicago Fed President Charles Evans, a 2017-voting member, remains concerned about undershooting the 2% target for inflation.
  • Will keep a close eye on the near-term range, with a break/close below 1.3300 (61.8% expansion) to 1.3310 (38.2% retracement) raising the risk for a larger pullback, with then next area of interest coming in around 1.32230 (23.6% retracement) followed by 1.3080 (38.2% retracement).

Currency

Last

High

Low

Daily Change (pip)

Daily Range (pip)

USD/JPY

105.00

105.05

104.30

54

75

USD/JPY Daily

USD/JPY Daily Chart

Chart - Created Using Trading View

  • The Japanese Yen continues to lose ground against its U.S. counterparts as market participants eagerly wait for the results of the U.S. Presidential election; the near-term series of higher highs & lows may continue to take shape over the near-term should risk sentiment continue to improvement, with the 105.40 (50% retracement) hurdle in focus.
  • The Bank of Japan (BoJ) may keep the door open to further embark on its easing-cycle especially as the central bank pushes out its forecast of achieving the 2% target for inflation to fiscal-year 2018, but a further depreciation in the local currency may encourage Governor Haruhiko Kuroda and Co. to carry its wait-and-see approach into 2017 as it helps to anchor inflation-expectations.
  • The bullish RSI formation continues to cast a mixed outlook for USD/JPY, with a closing price above the 105.40 (50% retracement) hurdle raising the risk for a material test of the downward trend from earlier this year, with the next topside region of interest coming in around 106.60 (38.2% retracement).

DailyFX SSI
  • The DailyFX Speculative Sentiment Index (SSI) shows the retail crowd remains net-long USD/JPY since July 21, with sentiment hitting a 2016-extreme reading of +6.04 in September, while traders have been net-short USD/CAD since October 20.
  • USD/JPY SSI sits at +1.57 as 61% of traders are long, with short positions 18.4% lower from the previous week as open interest stands 12.0% below the monthly average.
  • USD/CAD SSI sits at -1.84 as 35% of traders are long, with short positions 16.1% lower from the previous week, while open interest stands 4.9% below the monthly average.
  • Market participation remains weak and appears to be waning as the focus shifts to the outcome of the U.S. Presidential election.

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

DailyFX Calendar

Click Here for the DailyFX Calendar

Get our top trading opportunities of 2016 HERE

Read More:

US Dollar, Asian Stocks Rise as FBI Clears Clinton Again

Was the EUR/USD Drop a Trap?

Crude Oil Price Forecast: Expect An Important Move Off 200-DMA

Technical Focus: Copper Changing Color

--- 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.

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

DISCLOSURES

News & Analysis at your fingertips.