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
Wall Street
Mixed
Gold
Bearish
GBP/USD
Bearish
USD/JPY
Bullish
More View more
Real Time News
  • Did you know a Doji candlestick signals market indecision and the potential for a change in direction. What are the top five types of Doji candlesticks? Find out: https://t.co/td5WA4hCZC https://t.co/lKvEMf4QRe
  • Weakness in equity markets continued last week as losses built and technical patterns hint further bearishness might be ahead. Get your #equities update from @PeterHanksFX here: https://t.co/GGVrB3r7if https://t.co/HPHUC8EG3o
  • 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/5uSWKoLkd6 https://t.co/q80wSAoxXP
  • There is a great debate about which type of analysis is better for a trader. Is it better to be a fundamental trader or a technical trader? Find out here: https://t.co/aVAzFypAg1 https://t.co/7mc19Gxrvm
  • #Gold prices succumbed to selling pressure as the US Dollar soared this past week What is #XAUUSD facing these next few days and can these fundamental forces extend its selloff? Check out my outlook here - https://www.dailyfx.com/forex/fundamental/forecast/weekly/chf/2020/09/26/Gold-Price-Outlook-Rising-US-Dollar-Sinks-XAUUSD-Will-Losses-Extend.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/gPhy0KoW3W
  • GDP (Gross Domestic Product) economic data is deemed highly significant in the forex market. GDP figures are used as an indicator by fundamentalists to gauge the overall health and potential growth of a country. Learn use GDP data to your advantage here: https://t.co/38gTDnpPbn https://t.co/Xtk5g4JQEB
  • Many people are attracted to forex trading due to the amount of leverage that brokers provide. Leverage allows traders to gain more exposure in financial markets than what they are required to pay for. Learn about FX leverage here: https://t.co/3Wked6GBOp https://t.co/SsUguHB39W
  • Key levels in forex tend to draw attention to traders in the market. These are psychological prices which tie into the human psyche and way of thinking. Learn about psychological levels here:https://t.co/1oygcFMFNs https://t.co/aD1ZWhTWZp
  • The price of #oil may continue to trade in a narrow range as the rebound from the September low ($36.13) appears to have stalled ahead of the month high ($43.43). Get your #commodities update from @DavidJSong here: https://t.co/719LgjFmYG https://t.co/SSoqjONUzA
  • The Australian Dollar may extend its slide lower despite the planned easing of Covid-19 restrictions, as the market continues to price in an RBA rate cut on October 6. Get your #currencies update from @DanielGMoss here: https://t.co/HJpngnerzY https://t.co/g6X8ABQDwY
Canadian Dollar Technical Analysis Overview: USDCAD, CADJPY, GBPCAD

Canadian Dollar Technical Analysis Overview: USDCAD, CADJPY, GBPCAD

2019-04-24 11:15:00
Justin McQueen, Analyst
Share:

CAD Analysis and Talking Points

  • USDCAD | Recent Uptrend Coincides with Weak Momentum
  • CADJPY | Key Support Holds
  • GBPCAD | Outlook Weak, Topside Resistance Situated at 1.7450-60

See the DailyFXQ2 FX forecast to learn what will drive the currency throughout the quarter.

USDCAD | Recent Uptrend Coincides with Weak Momentum

Gains in the USD index put the short-term range under threat with USDCAD breaking above the 1.34 handle, which saw a test of March 7-8th peak (1.3466), while the pair had also pushed through trendline resistance. Momentum behind the recent uptrend however, has been relatively weak, thus raising the possibility of a pullback. On the downside support is situated at the 1.3325-1.3340 area whereby the 50 and 100DMA resides. If indeed there is a topside break, resistance is seen at 1.3490-1.3500. USDCAD option implied volatility for today’s BoC rate decision jumped to the highest since the January decision with a break-even of 64pips. (For currency volatility report, click here)

USDCAD PRICE CHART: Daily Time Frame (Jan 2019 – Apr 2019)

Canadian Dollar Technical Analysis Overview: USDCAD, CADJPY, GBPCAD

Chart by IG

CADJPY | Key Support Holds

CADJPY continues to lack firm direction with the cross trading within a relatively narrow range having rejected trendline resistance and meeting support at the 83.00 handle. A break below support paves the way for a move towards the 38.2% Fib level, however, momentum indicators continue to point towards a modestly bullish bias, which in turn could see the cross set its sights back on trendline resistance.

CADJPY PRICE CHART: Daily Time Frame (Aug 2018–Apr 2019)

Canadian Dollar Technical Analysis Overview: USDCAD, CADJPY, GBPCAD

Chart by IG

GBPCAD | Outlook Weak, Topside Resistance Situated at 1.7450-60

With GBP gains limited amid the uncertainty regarding Brexit, the outlook for GBPCAD remains weak. Momentum indicators lean towards a bearish bias, although, support stemming from the 1.7300 handle has halted further declines in the cross for now. A break below however, opens the potential to test the 200DMA (1.7122), which also coincides with the 50% Fib. On the topside, key resistance is situated at the 1.7450-1.7460 area.

Canadian Dollar Technical Analysis Overview: USDCAD, CADJPY, GBPCAD

Chart by IG

--- 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