CAD Analysis and Talking Points
- USDCAD | Topping Out Above 1.35 For Now, Resistance Holds
- CADJPY | Outlook Remains Fragile Despite Sizeable Sell-Off
See the DailyFX Q2 FX forecast to learn what will drive the currency throughout the quarter.
USDCAD | Topping Out Above 1.35 For Now, Resistance Holds
Gains in USDCAD have topped out above 1.35, which had been evidenced by yesterday’s failure to hold above, suggesting that there is a possibility of exhaustion. Although, for USDCAD to fade its recent upside, topside resistance at 1.3520 needs to hold in the short term, otherwise a test of 1.36 is likely. Support is situated at 1.3440 (61.8% Fib of 1.3674-1.3063 drop), which held thus far. A closing break below places the 1.3370-80 support area in its sight. In the longer term however, the uptrend remains intact with weekly and monthly DMIs implying that risks remain tilted to further upside.
USDCAD PRICE CHART: Daily Time Frame (Dec 2018 – May 2019)
CADJPY | Outlook Remains Fragile Despite Sizeable Sell-Off
This week has seen CADJPY come under notable selling pressure having made a test of the 81.00 handle. Given the sizeable move to the downside, there is a possibility of a modest reprieve with the RSI dipping into oversold territory. However, the outlook continues to look fragile as momentum indicators tilt to the bearish bias on both the short and long term. Initial support is seen at 81.20, in which a push below exposes a run on the 61.8% Fibonacci retracement at 80.88.
CADJPY PRICE CHART: Daily Time Frame (Sep 2018 – May 2019)
--- Written by Justin McQueen, Market Analyst
To contact Justin, email him at Justin.mcqueen@ig.com
Follow Justin on Twitter @JMcQueenFX
