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
Mixed
Oil - US Crude
Mixed
Wall Street
Mixed
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
Mixed
GBP/USD
Mixed
USD/JPY
Mixed
More View more
Real Time News
  • Indices Update: As of 10:00, these are your best and worst performers based on the London trading schedule: FTSE 100: 0.23% France 40: 0.21% US 500: -0.20% Germany 30: -0.23% Wall Street: -0.23% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/3c12GSzzZ3
  • Is the Eurozone entering into a second debt crisis? Find out here: https://t.co/xHEhzcyXMb https://t.co/gJ0VfoEFWE
  • EUR/USD resistance at 1.2000 well and truly broken..currently @ 1.2030 on USD-weakness #eurusd #usd #euro @DailyFX https://t.co/B4hqLj50fM
  • Take a closer look visually at the most influential global importers and exporters here: https://t.co/G58J1cYv9t https://t.co/7PN8pYKhXH
  • US Dollar Basket (DXY) taking a tumble... https://t.co/t6kiwXWCX4
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 92.55%, while traders in Germany 30 are at opposite extremes with 80.61%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/aC5CZqRzxd
  • Commodities Update: As of 07:00, these are your best and worst performers based on the London trading schedule: Gold: 0.20% Silver: -0.31% Oil - US Crude: -0.34% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/7rkjdGff4Y
  • Euro May Turn Lower vs. US Dollar as Upswing Falters Below 1.20 - https://www.dailyfx.com/forex/technical/home/analysis/eur-usd/2021/04/19/Euro-May-Turn-Lower-vs-US-Dollar-as-Upswing-Falters-Below-1.20.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Spivak&utm_campaign=twr #EURUSD #technicalanalysis https://t.co/30VPCDfO1B
  • Forex Update: As of 07:00, these are your best and worst performers based on the London trading schedule: 🇯🇵JPY: 0.28% 🇦🇺AUD: 0.11% 🇳🇿NZD: 0.08% 🇨🇦CAD: 0.03% 🇨🇭CHF: 0.03% 🇪🇺EUR: 0.01% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/LQnZcITyT6
  • Indices Update: As of 07:00, these are your best and worst performers based on the London trading schedule: Germany 30: 0.09% France 40: 0.03% FTSE 100: -0.09% US 500: -0.23% Wall Street: -0.33% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/19eau4SxDU
USD/CAD Technical Analysis: Catching The Falling Knife of CAD Futile for Now

USD/CAD Technical Analysis: Catching The Falling Knife of CAD Futile for Now

Tyler Yell, CMT, Currency Strategist

To receive Tyler’s analysis directly via email, please sign up here.

Talking Points:

Across the board today, the US Dollar is higher at the expense of G10FX, and especially commodity FX. Three words that appear to describe the world after the Federal Reserve lifted rates is ‘monetary policy divergence.’ Monetary policy divergence is seen everywhere and the Canadian dollar is no different as diverging paths push the US/CA 2-yr yield further apart showing there’s little reason now to catch the CAD falling knife. The spread is up 5bps from the last writing or 200 pips ago on the cross and if the spread continues to widen, it’s appropriate to focus on upside still for the North American cross. A lot of this not only has to do with the Fed decision on December 16, but also the deepening glut in US Oil. USD/CAD bears or CAD bulls will need to wait for the trend higher to play out, and a reversal to form before trying to fight this mighty trend that appears set on approaching 1.4000.

Resistance on such a strong trend is about as firm as a drawn line in the side next to the water’s edge. Upside focus will be 1.3900, followed by the big figure of 1.4000. Support is a little more concrete, and until at least these levels break, it’s difficult finding a credible reason outside of a low odds gamble to fight the trend. Support at the Dec. 16low of 1.3728 would need to be the first break to say the trend is stalling at best or over at worst. The latter is less likely given the compounding factors that are pushing the cross higher. The next level of support worth watching would be 1.3675, the Weekly R2 Pivot. The first credible sign of a reversal would be on a break of the late September high of 1.3456. Until then, pullbacks should be favored long entry points as opposed to trend fighting short entries. With SSI currently at -4.329, the burden of proof toward a reversal is on the bears, not the bulls.

The burden of proof is on the bears, not the bulls.

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

DISCLOSURES