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
Bullish
Oil - US Crude
Mixed
Wall Street
Mixed
Gold
Bullish
GBP/USD
Bearish
USD/JPY
Mixed
More View more
Real Time News
  • Struggling to define key levels? Floor-Trader Pivots assist traders in identifying areas in a chart where price is likely to approach and can be used to set appropriate targets, while effectively managing risk. Learn how to use this indicator here: https://t.co/Ye4m1FMKUW https://t.co/sqeRL7Rf7u
  • Cyclical and non-cyclical stocks can help diversify a trader’s equity portfolio. Get your guide to understanding these stocks here: https://t.co/h7BKTd2J8N https://t.co/ukOW0dWJxf
  • Beautifully put. https://t.co/0fBsmUH6Pb
  • Gold prices could claw back lost ground ahead of the non-farm payrolls report for November, buoyed by a dovish FOMC, falling real yields and rising inflation expectations. Get your $XAUUSD market update from @DanielGMoss here:https://t.co/3mqut0yQIQ https://t.co/nfyycibwKM
  • Recessions can devastate the economy and disrupt the fortunes of individuals, businesses, and investors. But economic decline in the business cycle is inevitable, and your trading can be defined by how you respond to crisis. learn how to prepare here: https://t.co/e4CnobJCss https://t.co/UWnLJHVPN4
  • Rather than focusing on earning a specific number of pips per day, traders need to focus on what can be controlled. In trading terms this relates to following a strategy perfectly, with no emotion or hesitation. Learn more here: https://t.co/6ZH026QLRN https://t.co/JJIyKh8r1l
  • That if you’re offended by what someone says on Twitter and that ruins your day, you live an extremely lucky life to be able to have that be your biggest problem for the day. https://t.co/H9KQjR3ViK
  • Myth or fact? One thing is for sure, there are a lot of misconceptions about trading. Knowing the difference between common trading myths and the reality is essential to long-term success. Find out about these 'myths' here: https://t.co/EDvQdHfIPm https://t.co/tl54v6sKkX
  • Moving averages are extremely popular due to its easy-to-use nature and multitude of uses when trading. What are some popular moving averages and how can you use them? Find out: https://t.co/ik0wQ3MLGE https://t.co/heAYoTMDeR
  • MACD who? The Moving Average Convergence Divergence (MACD) is a technical indicator which simply measures the relationship of exponential moving averages (EMA). Find out how you can incorporate MACD into your trading strategy here:https://t.co/ZNs4Qi8ieG https://t.co/UqZBBPZiOl
Canadian Dollar Forecast: USD/CAD, GBP/CAD, AUD/CAD, CAD/JPY

Canadian Dollar Forecast: USD/CAD, GBP/CAD, AUD/CAD, CAD/JPY

2020-02-09 02:00:00
James Stanley, Strategist
Share:

Canadian Dollar Technical Forecast

  • The Canadian Dollar remained on the move following the January BoC driver.
  • USD/CAD price action remains near a key area of resistance.
  • CAD/JPY bounced from longer-term support, while AUD/CAD nears a key area on the chart.

USD/CAD Technical Outlook

It was another week of strength in USD/CAD, even as the pair approached a zone of resistance that’s held the highs in the pair for the past four months. USD/CAD has now gained for five consecutive weeks, helped along by the shift at the Bank of Canada around the January rate decision. As USD-strength has come roaring back in 2020 trade, the addition of CAD-weakness has made for an especially strong trend in USD/CAD, pushing the pair from a 2020 open below the 1.3000 handle all the way up to the 1.3300 area which has become a familiar zone of resistance in the pair.

Of note is the fact that USD/CAD tested the 1.3300 level every trading day throughout the week; each time sellers holding resistance at-or-around this level. Given this week’s resistance in the proximity of longer-term resistance, combined with overbought readings showing on the Daily chart, chasing this trend higher could be a challenge and, as such, the forecast will be set to neutral on the pair.

For very aggressive traders, there may even be reversal potential brewing in this backdrop.

Technical Forecast for USD/CAD: Neutral

USD/CAD Daily Price Chart

USDCAD Daily Price Chart

Chart prepared by James Stanley; USDCAD on Tradingview

USD/CAD BEARISH
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily -11% -20% -13%
Weekly 30% -7% 19%
Current Retail Sentiment in USD/CAD
Get My Guide

GBP/CAD Gives Back All of Last Week’s Gains

The British Pound got smashed this week as fears around Brexit re-entered the equation. While the final week of January brought a sizable bounce into the pair, that was entirely taken-out and then some as sellers came back into the mix.

GBP/CAD can remain an interesting option for CAD-strength scenarios away from the US Dollar. On the four-hour chart below, near-term support levels can help to guide the approach, with Fibonacci levels at 1.7127 and 1.7061 sitting just below current price action.

GBP/CAD Technical Forecast: Bearish

GBP/CAD Four-Hour Price Chart

GBPCAD Four-Hour Price Chart

Chart prepared by James Stanley; GBPCAD on Tradingview

AUD/CAD Reflexive Response Back to Support

It was a battle between two weak currencies this week in AUD/CAD. While both commodity currencies lost ground against the US Dollar, CAD weakness outpaced AUD weakness in the first few days of this week while that theme reversed for the final two trading days. Along the way, an assist at resistance came-in at the 50% marker of the post-Financial Collapse move, spanning the low from 2008 up to the 2012 high. This same level helped to set support in November and December of last year, finally succumbing to selling pressure in January of 2020.

Traits of Successful Traders
Traits of Successful Traders
Recommended by James Stanley
Traits of Successful Traders
Get My Guide

With this price now showing up as resistance, combined with a vulnerable level of support sitting just underneath current price action, the forecast will be set to bearish for next week in AUD/CAD.

AUD/CAD Technical Forecast: Bearish

AUD/CAD Daily Price Chart

AUDCAD Daily Price Chart

Chart prepared by James Stanley; AUDCAD on Tradingview

CAD/JPY Catches a Reprieve

Three weeks ago CAD/JPY ran into a bearish trend-line, and the two weeks following saw decisive bearish moves price-in on the chart. Sellers pushed all the way down to Fibonacci support around 81.90, which finally brought some buyers into the mix this week as the pair caught a reprieve.

But, given current drivers, CAD/JPY can remain one of the more attractive venues if looking for CAD-weakness; incorporating the potential for risk-aversion flows in the Japanese Yen. The forecast for next week will be set to bearish on the pair.

CAD/JPY Technical Forecast: Bearish

CAD/JPY Weekly Price Chart

CADJPY Weekly Price Chart

Chart prepared by James Stanley; CADJPY on Tradingview

--- Written by James Stanley, Strategist for DailyFX.com

Contact and follow James on Twitter: @JStanleyFX

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

DISCLOSURES