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CAD Analysis and Talking Points

  • USDCAD | Key Fibo Support in Focus
  • EURCAD | Momentum and Trend Signals Weak, Descending Channel Holds
  • CADJPY | Topside Resistance May Limit Upside

See the DailyFX Q1 FX forecast to learn what will drive the currency throughout the quarter.

USDCAD | Key Fibo Support in Focus

USDCAD has continued to edge lower amid the dip below the 200DMA (1.3159) and now eyes key support at 1.3130 (61.8% Fibo from 2017 high to low) and 1.3120 (61.8% Fibo from Oct 2018 rise to 2019 peak). Previous attempts to break below have failed, as such, focus is on for a closing break below, which could extend a move towards 1.3070 before the 1.3000 handle. However, momentum indicators (DMI’s) are somewhat mixed, while ADX trend signals are also muted, which in turn may see USDCAD remain within its 2-month range. Topside resistance seen at 1.3225 and 1.3330.

USDCAD PRICE CHART: Daily Time Frame (Aug 2018 – Feb 2019)

CAD Technical Analysis Overview: USDCAD, EURCAD, CADJPY

Chart by IG

EURCAD | Momentum and Trend Signals Weak, Descending Channel Holds

EURCAD remains within its descending channel, however, momentum indicators are struggling to show signs of much in the way of firm direction, alongside this trend signals are also weak, keeping the outlook neutral. Near-term support situated at the 1.49 handle, whereby a break below opens up a room towards 1.48. Downside risks to EURCAD likely to recede, provided there is a closing break above 1.5050.

EURCAD PRICE CHART: Daily Time Frame (Sep 2018– Feb 2019)

CAD Technical Analysis Overview: USDCAD, EURCAD, CADJPY

Chart by IG

CADJPY | Topside Resistance May Limit Upside

CADJPY continues to hover around the 84.00 handle as support at 83.72 underpins. Topside resistance may curb gains with the 200DMA at 84.58, while the 61.8% Fibo resides at the 85.00. Momentum indicators suggest that further upside is likely however, as trend signals weakening, this reinforces the viewpoint that further upside may be somewhat limited.

CADJPY PRICE CHART: Daily Time Frame (Jul 2018–Feb 2019)

CAD Technical Analysis Overview: USDCAD, EURCAD, CADJPY

Chart by IG

--- Written by Justin McQueen, Market Analyst

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

Follow Justin on Twitter @JMcQueenFX