CAD Analysis and Talking Points
- USDCAD | Topside Resistance Break Needed for 1.34
- EURCAD | Topside Resistance Suggest Upside Limited
- CADJPY | Moving Average Supports, Trend Remains Bearish
See the DailyFX Q1 FX forecast to learn what will drive the currency throughout the quarter.
USDCAD | Topside Resistance Break Needed for 1.34
USDCAD has not looked back having bounced off support from the 200DMA midway through the week. As such, a closing break above 1.3350 would be needed to raise scope for a fresh leg higher towards 1.34. Eyes on 50DMA which could cap upside, as it did late January. Momentum indicators remain bullish, albeit this has eased, following yesterday’s sizeable gains, potential for pullback. Near-term support resides at 1.3280 and 1.3220.
USDCAD PRICE CHART: Daily Time Frame (Apr 2018 – Feb 2019)
EURCAD | Topside Resistance Suggest Upside Limited
While EURCAD hovers around 1.51, much of yesterday’s price action had been somewhat corrective. As such, given the cluster of DMAs ahead (1.51-1.52), further upside could be somewhat limited, which in turn shifts focus towards a potential pullback towards 1.50 and 1.49. However, bearish momentum could be negated somewhat if EURCAD sees a close above 1.5150-60.
EURCAD PRICE CHART: Daily Time Frame (Feb 2018– Feb 2019)
CADJPY | Moving Average Supports, Trend Remains Bearish
The 50DMA elicits support for the cross, however, resistance from the 50% Fibonacci retracement (83.23) could cap price action. Alongside this, the broader trend continues to tilt to the downside amid the series of lower highs, while momentum indicators also suggest a weak outlook. Key support resides at 81.25.
CADJPY PRICE CHART: Daily Time Frame (Aug 2016–Feb 2019)
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--- Written by Justin McQueen, Market Analyst
To contact Justin, email him at Justin.mcqueen@ig.com
Follow Justin on Twitter @JMcQueenFX
