CAD Analysis and Talking Points
- USDCAD | Sideways Fashion, Range Holds
- CADJPY | Gains Risk being Faded on Short-Term Correction, Bias Remains Bearish
See the DailyFX Q2 FX forecast to learn what will drive the currency throughout the quarter.
USDCAD | Sideways Fashion, Range Holds
Last week saw USDCAD fail to consolidate below the 200DMA, which now sits at 1.3280. Consequently, the pair is now hovering around the middle of the 1.3230-1.3520 range. DMI’s are relatively mixed, while trend signals are muted, thus suggesting that the pair is likely to trade in sideways fashion and hold its well-established range. Near-term support resides at 1.3353, which marks the 100DMA, while on the topside, the 50DMA is situated at 1.3414. Outlook is neutral for now until a decisive break of 1.3250 or 1.3520 is made.
USDCAD PRICE CHART: Daily Time Frame (Dec 2018 – June 2019)
CADJPY | Gains Risk being Faded on Short-Term Correction, Bias Remains Bearish
Momentum indicators on the short and long-term timeframes continue to point towards a bearish bias. However, this has eased in the shorter time frame, which in turn raises the risk of a near-term correction, particularly with the 81.00 handle holding so far. Consequently, focus is in on for a potential fading of gains around the 82.00 handle (previously rejected on June 11th). On the downside, support is at 80.50 with a break below increasing scope for a test of 80.00.
CADJPY PRICE CHART: Daily Time Frame (Aug 2018 – June 2019)
--- Written by Justin McQueen, Market Analyst
To contact Justin, email him at Justin.mcqueen@ig.com
Follow Justin on Twitter @JMcQueenFX
