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. See our updated Privacy Policy here.

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
Wall Street
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
  • The ISM manufacturing index plays an important role in forex trading, with ISM data influencing currency prices globally. Learn about the importance of the ISM manufacturing index here: https://t.co/Xr3xtoFpZy https://t.co/j5xDAG6LLb
  • While the meetings of central bankers in the US, Japan and the UK will be front, left and center of traders’ minds this coming week, it would be wise not to ignore next Sunday’s German Federal Election. Get your euro forecast from @MartinSEssex here: https://t.co/m920Uvmngm https://t.co/yQYtfHf66s
  • Take a closer look visually at the most influential global importers and exporters here: https://t.co/G58J1dg6y3 https://t.co/Dqq9S9vGvo
  • Trading bias allows traders to make informative decisions when dealing in the market. This relates to both novice and experienced traders alike. Start learning how you may be able to make more informed decisions here: https://t.co/rz7fqhRoMG https://t.co/lccPTTlvj0
  • GBP/USD’s consolidation could end soon if price breaks out of a symmetrical triangle in play since July. At this time, a downside breakout is likely following the appearance of a death cross. Get your weekly $GBP forecast from @DColmanFX here: https://t.co/WIKdSesfkJ https://t.co/Fx0qr32xgI
  • 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 how to control greed in trading here: https://t.co/kODPAfJE79 https://t.co/IRS9MaA7h8
  • The Federal Reserve rate decision is likely to sway the near-term outlook for the price of gold as the central bank appears to be on track to scale back monetary support. Get your weekly gold forecast from @DavidJSong here: https://www.dailyfx.com/forex/fundamental/forecast/weekly/CHF/2021/09/18/Gold-Price-Outlook-Hinges-on-Fed-Rate-Decision-Forward-Guidance.html https://t.co/dWWxtErjK0
  • Forex liquidity makes it easy for traders to sell and buy currencies without delay, and also creates tight spreads for favorable quotes. Low costs and large scope to various markets make it the most frequently traded market in the world. Learn more here: https://t.co/arxYmtQeUn https://t.co/4qxwiJsV1K
  • Forex quotes reflect the price of different currencies at any point in time. Since a trader’s profit or loss is determined by movements in price, it is essential to develop a sound understanding of how to read currency pairs. Learn how to read quotes here: https://t.co/CNtqrKWDBY https://t.co/stMPuq0VXR
  • A currency carry trade involves borrowing a low-yielding currency in order to buy a higher yielding currency in an attempt to profit from the interest rate differential. Find out if the carry trade suits your trading style here: https://t.co/7t4BzmLg8w https://t.co/v6RGICQvge
Canadian Dollar Forecast: USD/CAD May Melt Higher After Pull Back

Canadian Dollar Forecast: USD/CAD May Melt Higher After Pull Back

Peter Hanks, Strategist

USD/CAD Price Outlook:

  • USD/CAD staged a meteoric rise earlier this month before stalling out around 1.4669
  • Recent price action has seen the pair fluctuate around the 1.40 level
  • After stalling its decline, USD/CAD may aim higher on CAD weakness

Canadian Dollar Forecast: USD/CAD May Melt Higher After Pull Back

USD/CAD soared earlier this month as extreme risk aversion drove USD demand and a breakdown in crude oil prices worked to undermine the Canadian Dollar’s standing. Together, the forces were enough to spark a remarkable rally that saw the pair reach its highest point since January 2016. At the time, the surged appeared overbought and vulnerable to a brief pull back as I highlighted at the time.

USD/CAD Price Chart: Daily Time Frame (January 2019 – March 2020)

usd/cad price chart daily

To be sure, the recent drawdown in volatility may see USD strength wane as risk appetite reemerges, but the ongoing crude oil rout may act as a persistent threat to the Canadian Dollar. Coupled with the possibility of resurgent volatility stoking USD demand, USD/CAD seems tilted toward further strength that may see the pair continue its journey higher in the weeks ahead. Now that the pair has had the opportunity to consolidate some of its recent gains, opportunities for long exposure have become somewhat more attractive.

To that end, early areas of support may reside around 1.40 and the recent swing low at 1.3924. A break beneath 1.3924 would considerably undermine the prospect of further gains in my opinion. With that said, a continuation of USD/CAD strength may ultimately have to negotiate the recent spike on March 16 at 1.4669 before it can target subsequent resistance at the 2016 high narrowly above.

Together, the levels will look to create a significant barrier to further gains, but resistance in the interim appears relatively sparse. Critically, however, the market is currently experiencing a drawdown in volatility that could make a rally toward the barriers above take weeks. Therefore, if volatility continues to recede, a gradual melt higher becomes more likely than a parabolic surge to establish new highs. In the meantime, follow @PeterHanksFXon Twitter for updates and analysis.

--Written by Peter Hanks, Junior Analyst for DailyFX.com

Contact and follow Peter on Twitter @PeterHanksFX

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

DISCLOSURES