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
EUR/USD
Bearish
Oil - US Crude
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
Wall Street
Mixed
Gold
Bullish
GBP/USD
Mixed
USD/JPY
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
More View more
Real Time News
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.80%, while traders in EUR/USD are at opposite extremes with 70.05%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/LBx0DcXYmu
  • Check out @DailyFX Chief Strategist @JohnKicklighter discuss today’s currency market catalysts driving the dollar index, Euro, Sterling, Yen, and more on today’s Macro Setup with @GuyAdami and @RiskReversal:https://t.co/Dtdx6xBX7q
  • Indices Update: As of 18:00, these are your best and worst performers based on the London trading schedule: US 500: 0.06% FTSE 100: -0.10% Germany 30: -0.26% Wall Street: -0.32% France 40: -0.37% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/cZ9djYlhxo
  • $Nas 100, the test... the zone from 11,570-11,626 was resistance in the $Nasdaq in early Sept & and early Oct. Came back as support last week, held the lows into yday. Now showing potential resistance - but will sellers show up? $QQQ https://t.co/ViENP066Hz https://t.co/h2LYiXGGcW
  • RT @GuyAdami: Profile pictures notwithstanding, this was another worthwhile conversation. Thank you @JohnKicklighter from @DailyFX for join…
  • S&P 500 Price Forecast: SPX Tests Huge Zone at Bull Flag Support https://www.dailyfx.com/forex/fundamental/daily_briefing/session_briefing/daily_fundamentals/2020/10/27/SPX-SPY-ES-Price-Forecast-SPX-Tests-Huge-Zone-at-Bull-Flag-Support.html $SPX $SPY $ES https://t.co/Pu2IgKdY5E
  • ....also, the outlook with a third peak in Covid cases in the US - and spread globally - is going to seriously undermine the sustainability of growth
  • A lot is being made of how remarkable the forecasted 31% increase in US GDP for 3Q would be if we hit the number Thursday, but remember the context. We are coming off a -31.4% plunge. You need an even bigger recovery to get back up to pace starting from a hole https://t.co/oBJKnOVgqu
  • is possible that USD/CAD is trying to carve a higher-low from the September 1 low, but some more work is needed to turn the near-term favorable for taking long-side bets. Get your $USDCAD technical analysis from @PaulRobinsonFX here:https://t.co/qNZxsbcXZO https://t.co/tZbYH8fG2h
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.79%, while traders in EUR/USD are at opposite extremes with 70.03%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/zsLSaHzzOv
Canadian Dollar Forecast: USD/CAD Risks Catapulting Higher as Reversal Unfolds

Canadian Dollar Forecast: USD/CAD Risks Catapulting Higher as Reversal Unfolds

2020-01-09 12:10:00
Justin McQueen, Analyst
Share:

CAD Analysis and Talking Points

  • USD/CAD | Reversal Underway, Eyes on 1.3100
  • Reduced US-Iran Tensions Weigh on Oil Prices

USD/CAD | Reversal Underway, Eyes on 1.3100

While tensions remain high between the US and Iran, they appear to be easing slightly with the US refraining from taking further action. Consequently, oil prices have pared their initial upside, which in turn has weighed on commodity linked currencies, such as the Canadian Dollar. That said, USD/CAD looks attractive for a reversal, having broken back above the 1.3000 handle. The pair now tests 1.3053, which marks the 23.6% fib, whereby a closing break above raises scope for a move towards 1.3100-10.

Aside from geopolitics, eyes will be on BoC Governor Poloz at 19:00GMT (14:00ET) who is scheduled to take part in a fireside chat. There is a risk that the Governor could provide a more cautious outlook from a domestic standpoint following the recent economic growth data, where Canada showed a contraction in growth for the first time in 8 months at -0.1%. Elsewhere, focus will also be on the Canadian jobs report on Jan 10th and Business Outlook Survey on Jan 13th.

Support

Resistance

1.3000

-

1.3053

23.6% Fib

1.2950

-

1.3100

-

1.2947

2019 low

1.3167

50% Fib

USD/CAD Price Chart: Daily Time Frame (Aug 2019 – Jan 2020)

Canadian Dollar Forecast: USD/CAD Risks Catapulting Higher as Reversal Unfolds

Source: IG Charts

--- Written by Justin McQueen, Market Analyst

To contact Justin, email him at Justin.mcqueen@ig.com

Follow Justin on Twitter @JMcQueenFX

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

DISCLOSURES