CAD Analysis and Talking Points
See the DailyFX FX forecast to learn what will drive the currency throughout the quarter.
USDCAD | 200WMA Break Paves way for 2019 Low
As the broader outlook for the greenback remains defensive, USDCAD has continued to edge lower. Momentum indicators remain bearish, thus a move towards the 2019 low at 1.3068 is within reach. However, support at 1.3119 appears to be holding for now, which represents the 200WMA, as such, eyes are on for a closing break below. Alongside this, while the daily RSI is in oversold territory, a bounce back in the pair may well be short-lived given the soft tone for the USD.
USDCAD PRICE CHART: Daily Time Frame (Nov 2018 – June 2019)
USDCAD PRICE CHART: Weekly Time Frame (May 2017 – June 2019)
CADJPY | Faces Critical Test as Bearish Pressure Abates
Yesterday’s bounce in the cross has seen dramatic easing in the bearish pressure on the cross, having reclaimed the 82.00 handle, while also break above the descending trendline from the October 2018 peak. In turn, CADJPY faces a key test at 82.43 (38.2% Fib level) before 82.62 (marks the May high and 100DMA). However, while the daily DMI has flipped to positive, both the weekly and monthly DMI’s remain bearish, thus further gains in the cross may be somewhat limited.
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
