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
Subscribe
Please try again
EUR/USD
Bearish
Oil - US Crude
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Wall Street
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Bearish
GBP/USD
Mixed
USD/JPY
Bearish
More View more
Real Time News
  • (Weekly Fundamental) Australian Dollar Outlook: Tied to Biden Stimulus Bets, S&P 500, US Dollar, Treasuries $AUDUSD #SP500 #stimulusbill #USD https://www.dailyfx.com/forex/fundamental/forecast/weekly/aud/2021/01/16/Australian-Dollar-Outlook-Tied-to-Biden-Stimulus-Bets-SP-500-US-Dollar-Treasuries.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/H7aus0Aljt
  • The inside bar pattern occurs regularly within financial markets. Incorporating the inside bar strategy can enhance a trader's market analysis. Find out how more here: https://t.co/E3EWOYTYNw https://t.co/7zI3p6UNVs
  • Bank of Japan to mull widening of its long-term yield band -BBG $USDJPY
  • While the rise in longer-dated Treasury yields have been impressive as of late, March highs remain a key focus for resistance The medium-term uptrend remains intact, maintained by rising support from August Fading fiscal stimulus expectations (size) may sour yields ahead https://t.co/L3vBcF0ts7
  • Trading bias allows traders to make informative decisions when dealing in the market. This relates to both novice and experienced traders alike. Start learning how you may be able to make more informed decisions here: https://t.co/rz7fqhRoMG https://t.co/vFJ8zmphMm
  • While the US Dollar has been holding its ground, its downside bias against the Singapore Dollar, New Taiwan Dollar Thai Baht and Indonesian Rupiah remains intact as it hovers at support. Get your market update from @ddubrovskyFX here: https://t.co/p7gAztWuVG https://t.co/zB1pOS6U4D
  • The $VIX is now running 227 trading days above the 20 handle. It is also working its way quickly into a dead-end descending triangle. These don't really break lower... https://t.co/39Pr7YrQ08
  • WTI Crude amongst the many market participants taking a hit today, down almost 3% $WTI $USD https://t.co/eg2phm1wUO
  • The power of suggestion: even though the market recognized the mistake with mixing Tesla founder Musk's suggestion to use the Signal app with the stock SIGL, it is still trading >2,000% above pre-remark levels and maintains heavy volume. Us speculators are an interesting people
  • Forex Update: As of 21:00, these are your best and worst performers based on the London trading schedule: 🇯🇵JPY: -0.07% 🇨🇭CHF: -0.35% 🇪🇺EUR: -0.65% 🇨🇦CAD: -0.75% 🇦🇺AUD: -0.95% 🇳🇿NZD: -1.19% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/6NZVebT00L
Canadian Dollar Outlook: Key USD/CAD, CAD/JPY Levels to Watch

Canadian Dollar Outlook: Key USD/CAD, CAD/JPY Levels to Watch

2021-01-12 12:00:00
Justin McQueen, Analyst

CAD, CAD/JPY Analysis and Talking Points

Canadian Dollar Tracking Risk Sentiment and Oil Prices

The Bank of Canada Business Outlook Survey continued to show a recovery in business sentiment from the near-record lows with optimism largely stemming from advances in vaccine developments. However, this is in contrast to the deterioration in the labour market, as evidenced by Friday’s jobs report. That said, in the short-run, the Canadian Dollar will continue to track risk sentiment and oil prices, which have broken out to fresh multi-month highs.

Advertisement
Canadian Dollar Outlook: Key USD/CAD, CAD/JPY Levels to Watch

USD/CAD | Possible Base Forming as US Dollar Recovers

In recent sessions, the US Dollar has traded in corrective fashion as US yields make a topside breakout. USD/CAD looks to have formed a short-term base with the RSI failing to confirm the recent lower low in the spot price, thus, the pair is testing trendline resistance at 1.2750. That said, it is worth noting that in light of the recent bid in USD/CAD the RSI has yet to break over 50, while has a close above trendline resistance has also not materialised as of yet. This emphasises that the USD led bid in the pair remains corrective thus far. That said, if indeed there is a break, near term focus will be on 1.2835 and 1.2900 above.

Canadian Dollar Chart: Daily Time Frame

Canadian Dollar Outlook: Key USD/CAD, CAD/JPY Levels to Watch

Source: Refinitiv

Canadian Dollar Technical Levels

Support

Resistance

1.2700

-

1.2800

-

1.2650

-

1.2835

Jan 11th High

1.2626

Jan 6th low

1.2900

-

USD/CAD BULLISH
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily -13% 7% -8%
Weekly -5% -2% -4%
What does it mean for price action?
Get My Guide

Find out more on the 4 key technical indicators that traders should know

CAD/JPY | Facing Long-Term Resistance

The cross is back to testing longer-term resistance situated at 82.00, however, with upside momentum stalling, further gains may be harder to come by in the short-run, particularly as good news is largely priced in risk assets, therefore rising concerns over the spike in virus cases presents downside risks. Support resides at 81.00 whereby a downside break may exacerbate further losses in the cross towards 80.50-60, below here places focus on 80.00-80.10 area.

How to Use IG Client Sentiment in Your Trading
How to Use IG Client Sentiment in Your Trading
Recommended by Justin McQueen
Improve your trading with IG Client Sentiment Data
Get My Guide

CAD/JPY Chart: Daily Time Frame

Canadian Dollar Outlook: Key USD/CAD, CAD/JPY Levels to Watch

Source: Refinitiv

Support

Resistance

81.00

-

82.00

-

80.64

50DMA

82.35-40

-

80.23

100DMA

82.50

-

A Helpful Guide to Support and Resistance Trading

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES