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
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
Bullish
Gold
Mixed
GBP/USD
Bullish
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
USD/JPY
Mixed
More View more
Real Time News
  • The Indian Rupee has been rising despite a surge in local Covid cases, owing to rising yields amid a temporary flood of US Dollars into the banking system. INR remains at risk, eyeing CPI data. Get your market update from @ddubrovskyFX here:https://t.co/6r7hahVtx4 https://t.co/a0z46Q0Mn4
  • Risk management is one of the most important aspects of successful trading, but is often overlooked. What are some basic principles or risk management? Find out from @PaulRobinsonFX here: https://t.co/IsnpfJhp91 https://t.co/tnF1RME8gJ
  • Top event risk on my radar for the week ahead: Musk on SNL (Sat); run of Fed speak with Brainard, Williams, Bostic (Tues); US CPI and UK GDP (Wed); Mexico central bank rate decision (Thur); US earnings - PLTR, BABA, ABNB, DASH, DIS (Tues-Thur). What are you watching?
  • It starts. This man is living the life. https://t.co/YhD4oMNAFG
  • Forex Update: As of 20:00, these are your best and worst performers based on the London trading schedule: 🇪🇺EUR: 0.82% 🇦🇺AUD: 0.77% 🇨🇭CHF: 0.75% 🇳🇿NZD: 0.62% 🇯🇵JPY: 0.46% 🇨🇦CAD: 0.23% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/j5I6Gut0CR
  • Commodities Update: As of 20:00, these are your best and worst performers based on the London trading schedule: Gold: 0.85% Silver: 0.53% Oil - US Crude: -0.18% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/wZsuyfwuv1
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 88.33%, while traders in Wall Street are at opposite extremes with 77.43%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/IrlL0LEJe3
  • Fresh projections coming out of the Bank of England (BoE) instills an improved outlook for the $GBP. Get your market update from @DavidJSong here:https://t.co/BNicSsCTZG https://t.co/2tjCVIx1Vp
  • Gold Price Forecast: Gold Bulls Re-Ignite Big-Picture Bullish Trend https://www.dailyfx.com/forex/technical/article/fx_technical_weekly/2021/05/07/gold-price-forecast-gold-bulls-re-ignite-big-picture-bullish-trend.html $Gold https://t.co/TaJCgg0w0T
  • Indices Update: As of 20:00, these are your best and worst performers based on the London trading schedule: France 40: 0.24% Germany 30: 0.17% FTSE 100: 0.17% Wall Street: 0.01% US 500: 0.01% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/WlYaH7FiDo
USD/CAD Technical Analysis: Loonie Gets Lift From Oil

USD/CAD Technical Analysis: Loonie Gets Lift From Oil

Tyler Yell, CMT, Currency Strategist

Talking Points:

The foe to CAD Bull’s has become a friend. Oil rose for the second day in a row on Wednesday after refinery usage data rose aggressively, signaling the US stockpiles may draw down and the market may begin to balance. The correlation of the Canadian Dollar to Crude Oil has risen recently after spending a few months disjointed.

As of Wednesday, March 29, 2017, Crude Oil has a 20-day rolling inverse relationship with USD/CAD and USD/MXN of -0.557 and -0.579 respectively. The inverse correlation shows us as Oil moves higher, USD/CAD and USD/MXN move lower, albeit not perfectly. Therefore, we should watch Oil to get a sense of what may happen next with USD/CAD. Currently, USOIL is trading near the 200-DMA, and a failure to break back above on a sustainable basis may lead to further upside in USD/CAD, which the current channel seems to favor.

Interested in Joining Our Analysts, Instructors, or Strategists For a Free Webinar? Register Here

The chart below of USD/CAD shows that we’re trading in the middle of a rising channel. The spot price of 1.3330 sits above the March 22 low support at 1.32635. Just below the March 22 low is the 50% retracement of the late January to March Range at 1.32517 followed by the 61.8% retracement at 1.31846. Such levels should be watched if Oil gains compound. The resistance in focus in the current move lower is the March 28 high of 1.3414.

The support that we’re watching also aligns with the Daily Ichimoku cloud that could provide a buying opportunity for traders with a focus on a continual move higher toward the March 9 high of 1.35349. The channel that has framed price action so well is drawn off the May extremes with internal lines at the 23.6, 50, & 78.6% point of the initial range with the same slope as the channel. The top of the prior range is the December 28 high of 1.3598, which would also be the beginning of the top quartile in the price range. The top quartile will be an appropriate focus if the ST momentum remains bullish and 2yr US/CA yield differentials begin to widen again. The top of the channel comes in near 1.3790.

A reversal below the proven support of 1.3050/150 would need to break to turn the technical view from neutral to bearish.

What Did The Analysts Learn After Trading Of All 2016? Click Here To Find Out

D1 USD/CAD Chart: Pullback In Rising Price Channel May Bring Opportunity

USD/CAD Technical Analysis: Loonie Gets Lift From Oil

Chart Created by Tyler Yell, CMT

USD/CAD Technical Analysis: Loonie Gets Lift From Oil

Retail trader data shows 42.1% of traders are net-long with the ratio of traders short to long at 1.38 to 1. The number of traders net-long is 3.7% lower than yesterday and 0.4% higher from last week, while the number of traders net-short is 2.4% lower than yesterday and 7.7% lower from last week.

We typically take a contrarian view to crowd sentiment, and the fact traders are net-short suggests USDCAD prices may continue to rise. Positioning is more net-short than yesterday but less net-short from last week. The combination of current sentiment and recent changes gives us a further mixed USDCAD trading bias.

---

Shorter-Term USD/CAD Technical Levels for Wednesday, March 29, 2017

USD/CAD Technical Analysis: Loonie Gets Lift From Oil

For those interested in shorter-term levels of focus than the ones above, these levels signal important potential pivot levels over the next 48-hours of trading.

T.Y.

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

DISCLOSURES