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.



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

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Oil - US Crude
Wall Street
More View more
Real Time News
  • There is a great debate about which type of analysis is better for a trader. Is it better to be a fundamental trader or a technical trader? Find out here:
  • #Gold prices succumbed to selling pressure as the US Dollar soared this past week What is #XAUUSD facing these next few days and can these fundamental forces extend its selloff? Check out my outlook here -
  • GDP (Gross Domestic Product) economic data is deemed highly significant in the forex market. GDP figures are used as an indicator by fundamentalists to gauge the overall health and potential growth of a country. Learn use GDP data to your advantage here:
  • Many people are attracted to forex trading due to the amount of leverage that brokers provide. Leverage allows traders to gain more exposure in financial markets than what they are required to pay for. Learn about FX leverage here:
  • Key levels in forex tend to draw attention to traders in the market. These are psychological prices which tie into the human psyche and way of thinking. Learn about psychological levels here:
  • The price of #oil may continue to trade in a narrow range as the rebound from the September low ($36.13) appears to have stalled ahead of the month high ($43.43). Get your #commodities update from @DavidJSong here:
  • The Australian Dollar may extend its slide lower despite the planned easing of Covid-19 restrictions, as the market continues to price in an RBA rate cut on October 6. Get your #currencies update from @DanielGMoss here:
  • The Indian Rupee may be at risk to the US Dollar as USD/INR attempts to refocus to the upside. This is as the Nifty 50, India’s benchmark stock index, could fall further. Get your USD/INR market update here:
  • Technical indicators are chart analysis tools that can help traders better understand and act on price movement. Learn more about the importance of technical analysis here:
  • #Gold prices have plunged nearly 11% off the record highs with a breakout risking further losses. Here are technical trade levels that matter on the XAU/USD weekly chart. Get your #metals update from @MBForex here:
USD/CAD Outlook Mired Ahead of Canada Employment by Bearish RSI Signal

USD/CAD Outlook Mired Ahead of Canada Employment by Bearish RSI Signal

2019-04-03 17:30:00
David Song, Strategist

Canadian Dollar Talking Points

USD/CAD gives back the rebound from earlier this week even though the Bank of Canada (BoC) warns that ‘the economic outlook continues to warrant a policy interest rate that is below the neutral range,’ and the advance from the 2019-low (1.3068) may continue to unravel over the coming days as the Relative Strength Index (RSI) flashes a bearish signal.

USD/CAD Outlook Mired Ahead of Canada Employment by Bearish RSI Signal

The Canadian dollar struggled to hold its ground following a speech by BoC Governor Stephen Poloz as the central bank head pledges to ‘help the economy work through this downshift in growth and keep inflation close to target.

The comments suggest the BoC will keep the benchmark interest rate on hold at the next meeting on April 24 as ‘Canada’s economic growth slowed late last year, and this weakness is extending into 2019,’ and the central bank may continue to tame bets for higher interest rates as ‘the data are currently giving us a mixed picture and need to be carefully monitored.

Image of DailyFX economic calendar

It remains to be seen if the BoC will abandon the hiking-cycle as officials argue that ‘recent economic data have been generally consistent with our expectation that the period of below-potential growth will prove to be temporary,’ and updates to Canada’s Employment report may shake up the near-term outlook for the Canadian dollar as the economy is anticipated to add 10.0K jobs in March following the 55.9K expansion the month prior.

Keep in mind, the broader outlook for USD/CAD remains constructive following the break of the June-high (1.3386) as the exchange rate stages a near-term breakout after bouncing along the 200-Day SMA (1.3191). However, recent developments in the Relative Strength Index (RSI) highlights a bearish signal as the oscillator snaps the upward trend from earlier this year and appears to be working its way towards overbought territory. Sign up and join DailyFX Currency Analyst David Song LIVE for an opportunity to discuss potential trade setups.

USD/CAD Rate Daily Chart

Image of usdcad daily chart
  • The USD/CAD advance from the March-low (1.3130) appears to have stalled following the failed attempts to close above the Fibonacci overlap around 1.3420 (78.6% retracement) to 1.3460 (61.8% retracement).
  • In turn, USD/CAD may continue to face range-bound conditions as the 1.3290 (61.8% expansion) to 1.3310 (50% retracement) region acts as near-term support, but a close below the stated region opens up the next downside hurdle around 1.3130 (61.8% retracement), which largely lines up with the March-low (1.3130).

Additional Trading Resources

Are you looking to improve your trading approach? Review the ‘Traits of a Successful Trader’ series on how to effectively use leverage along with other best practices that any trader can follow.

Want to know what other currency pairs the DailyFX team is watching? Download and review the Top Trading Opportunities for 2019.

--- Written by David Song, Currency Analyst

Follow me on Twitter at @DavidJSong.

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