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. See our updated Privacy Policy here.

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
More View more
Real Time News
  • How does stock market liquidity benefit its traders? Learn more here: https://t.co/FWKyIDUwAw https://t.co/tyoYrsh8mQ
  • A currency carry trade involves borrowing a low-yielding currency in order to buy a higher yielding currency in an attempt to profit from the interest rate differential. Find out if the carry trade suits your trading style here: https://t.co/7t4BzmLg8w https://t.co/4078fnQJON
  • Looking for a new way to trade reversals? One of the most used reversal candle patterns is known as the Harami. Like most candlestick formation patterns, the Harami tells a story about sentiment in the market. Get better with trading reversals here: https://t.co/kIIBffEMi7 https://t.co/tt59BU8lnS
  • Quarterly earnings from Netflix and Tesla, two big tech companies, will take center stage next week and could set the trading tone for the S&P 500 and the Nasdaq 100. Get your weekly equities forecast from @DColmanFX here: https://t.co/NOCqjJ3TLd https://t.co/HR5xUZeJXp
  • Do you know the difference between investing and trading? Because while the goal might seem the same, they're very different things . Learn more here.https://t.co/fG6fNEPj9q https://t.co/ymGaYjrl1g
  • What is your forex trading style? Take the quiz and find out: https://t.co/YY3ePTpzSI https://t.co/FOMcsxci50
  • Further your trading knowledge and gain informed market analyses from our expert analyst @DavidJSong on Oil with our free Q4 guide, available for free today.https://t.co/Y6XECmr5fQ https://t.co/XQI3PN4bkQ
  • Nasdaq 100 may hit new high soon. https://t.co/ACtVqiOBl0
  • HSTECH index has likely formed an "Inverse Head & Shoulders" pattern. https://t.co/YFIQEYmuyq
  • The HSI has likely formed a “Double Bottom” chart pattern, which is usually viewed as bullish-biased. https://t.co/wMQ14A867Q
Canadian Dollar Analysis: Are Recent USD/CAD, EUR/CAD Lows in the Rearview Mirror?

Canadian Dollar Analysis: Are Recent USD/CAD, EUR/CAD Lows in the Rearview Mirror?

Daniel McCarthy,

USD/CAD, EUR/CAD - Talking Points

  • USD/CAD and EUR/CAD established lows in the second quarter
  • The USD/CAD has displayed some potential for a trend unfolding
  • EUR/CAD has been caught in a range, but can it break out?

USD/CAD – Technical Analysis

USD/CAD’s low of 1.2007 seen in June is part of an island low that can technically signal an ongoing reversal. Since then, the pair has consistently made higher highs and higher lows, displaying an upward trend.

Since making the high last month of 1.2949, USD/CAD pulled back down to 1.2493. This created a 61.8% Fibonacci level of 1.2775. The run-up after the 1.2493 low ended just below this level. This makes two relatively close levels of potential resistance at 1.2762 and 1.2775. The high of 1.2949 may also offer resistance.

Below the market, an ascending trend line could provide support, currently at 1.2560. Previous lows at 1.2493 and at 1.2422 could also provide support.

The USD/CAD is currently trading near the 21-day simple moving average (SMA) of 1.2642 and the 260-day SMA at 1.2662. If the 21-day SMA should close above the 260-day SMA, this could suggest some further upward momentum is unfolding.

Canadian Dollar Analysis: Are Recent USD/CAD, EUR/CAD Lows in the Rearview Mirror?

Chart created in TradingView

EUR/CAD – Technical Analysis

EUR/CAD broke down in March, creating a pivot point at 1.5201 on its way to the low of 1.4582. These two levels have created a broad trading range that EUR/CAD has been caught in since. From May to July the market traded in a narrower trading band. After it broke up the topside af that band, there has been a bias toward higher highs and higher lows.

As a result of this range trading dynamic, there are a series of previous highs and lows that will likely be key levels to watch. The levels of previous lows to the downside that might provide support are 1.4883, 1.4788, 1.4661, 1.4606 and 1.4582.

To the topside, the levels of previous highs that may offer resistance are at 1.5063, 1.5115 and 1.5201. Addionally the 200-day SMA is currently at 1.5012 and could offer some resistance but a close above the 200-day SMA could suggest some upward momentum.

Canadian Dollar Analysis: Are Recent USD/CAD, EUR/CAD Lows in the Rearview Mirror?

Chart created in TradingView

--- Written by Daniel McCarthy, Strategist for DailyFX.com

To contact Daniel, use the comments section below or @DanMcCathyFX on Twitter

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

DISCLOSURES