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
Subscribe
Please try again
EUR/USD
Bullish
Oil - US Crude
Bullish
Wall Street
Bearish
Gold
Mixed
GBP/USD
Bearish
USD/JPY
Bearish
More View more
Notice

BoE Chief Econimist (Hawk) is to Step Down From BoE After June Meeting

Real Time News
  • When is Kodak going to get into the SPAC game? Bitcoin mining pivot in 2018 and Vaccine production pivot in July 2020. Any day now...
  • Commodities Update: As of 20:00, these are your best and worst performers based on the London trading schedule: Silver: 2.19% Gold: 0.74% Oil - US Crude: 0.34% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/QNPEEysdEK
  • The Dow Jones, Nasdaq 100 and S&P 500 will look to the arrival of earnings season for influence. Get your #equities market update from @PeterHanksFX here:https://t.co/96vOGDYq2K https://t.co/xUE3PxGz9B
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 92.41%, while traders in France 40 are at opposite extremes with 75.87%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/akuL5mmcvW
  • Pfizer states it can deliver 10% more vaccine doses to the US by the end of May $PFE $SPX $NDX $RUT
  • Had the pleasure of sitting down with @GuyAdami and @RiskReversal for another episode of The Macro Setup to discuss $GLD $BTC and $SPX ahead of earnings season and the Coinbase IPO Watch here - https://t.co/6usEdkA5om
  • Indices Update: As of 20:00, these are your best and worst performers based on the London trading schedule: France 40: 0.41% Germany 30: 0.06% Wall Street: 0.00% FTSE 100: 0.00% US 500: -0.01% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/0qT3sH7l3i
  • #Bitcoin breaks out to fresh all-time highs as investors cast an eye to the long awaited Coinbase IPO #BTC $BTCUSD https://t.co/qwxlzkGa9C
  • NY Fed Treasury purchase schedule remains unchanged - BBG
  • Silver posting a strong session, now up 2.3% on the day. In recent trade, silver has struggled to break above the 50-day EMA $XAG $USD https://t.co/BetnXeKLj3
USD/CAD Price: Waiting on OPEC+ for Further Guidance

USD/CAD Price: Waiting on OPEC+ for Further Guidance

Nick Cawley, Strategist

Canadian Dollar Price, News, and Analysis:

The Quiz
Discover what kind of forex trader you are
Start Quiz

For all market-moving economic data and events, see the DailyFX Calendar.

USD/CAD continues its longer-term downtrend with the Loonie one of only a handful of currencies able to better a resurgent US dollar. The year-long sell-off from the mid1.40s is starting to slow down with the pair now in the middle of a four-month range between 1.2360 and 1.2950 and it will require a strong driver to break out of this zone in the short- to medium-term.

This week’s OPEC+ meeting is expected to see current output levels left untouched due to the ongoing spread of covid-19 and the knock-on effect on the global economy. On Thursday, OPEC+ revised down oil demand estimates from 5.9 million bpd to 5.6 million bpd, noting ‘a rising number of confirmed Covid-19 infections globally’ with lockdown measures increased and reimposed ’in many regions’. OPEC will look to further run down oil supplies before the next meeting in May, giving the cartel time to see the effectiveness of the new pandemic measures. This should anchor the price of oil for the next month, bolstering the Canadian dollar.

In the short-term, USD/CAD will be looking to break out of a 20- and 50-day sma pincer movement with the pair stuck between the two for the last week. The 20-dsma is currently acting as support around 1.2534 while the 50-dsma is at 1.2621, leaving the pair stuck in a narrow range. The downtrend currently remains in place with a number of lower highs on the chart since early 2020, while a break below 1.2365 is needed to make a new lower low to confirm ongoing weakness.

Moving Averages (MA) Explained for Traders

USD/CAD Daily Price Chart

USD/CAD Price: Waiting on OPEC+ for Further Guidance
USD/CAD Bearish
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily 2% -13% -4%
Weekly 19% -33% -6%
Learn How to Use Sentiment in Your Trading Strategy
Get My Guide

IG Retail trader data show 56.48% of traders are net-long with the ratio of traders long to short at 1.30 to 1. We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests USD/CAD prices may continue to fall.Yet traders are less net-long than yesterday and compared with last week. Recent changes in sentiment warn that the current USD/CAD price trend may soon reverse higher despite the fact traders remain net-long.

What is your view on USD/CAD – bullish or bearish?? You can let us know via the form at the end of this piece or you can contact the author via Twitter @nickcawley1.

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

DISCLOSURES