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Canada

Best trade of the week? USDCAD or Oil? Will bearish bets on the Canadian dollar grow in the lead up to Wednesday? It is widely expected that the Canadian central bank will leave interest rates on hold during its meeting that concludes on this day (Although, it may be a hawkish hold as the Governor Tiff Macklem will mention that another hike is still on the table for the bank). Perhaps piling on the bearish sentiment is the slight fall in the price of oil (one of Canada's major exports), as US diplomatic efforts continue to contain the conflict between Israel and Hamas. How long this quietish period can last is up for debate though, and a ground offensive by the IDF in Gaza could send oil prices higher. Bullish takes on the USD/CAD (i.e., bearish bets on the Loonie) will have 1.37350 to content with, which is the high the pair reached before cratering to 1.36712 to start the week. 1.36936 is the more immediate resistance for bull to cross before even thinking about the day's high. The RSI’s weakness suggests this won’t be too difficult though, and 1.37189 might be the more formidable resistance.
by BlackBull_Markets
LONG AIRLINES ACDVF, AC, JETS, AAL, DALTSX:AC Technical and Fundamental Reasons for going Long AC Air Canada, and AAL and JETS and DAL: We are in a tightening 3 Month range in all airline names (And even in broader markets) Given how we have come straight down from the highs, a multi week bounce with legs is likely and positioning in here would be a strong Risk / Reward entry. While DXY the dollar is set for monthly consolidation along with oil (Despite the knee jerk reaction to Israel which will likely fade. Markets are holding up well and have priced in peak rates with yields all coming down sharply after capitulating last week. While DXY OIL and Yields drop. Airlines are huge laggards (and after good selling and bad news being well priced in) it is time for major bounces. It is a highly volatile sector so a big drop the way it did warrants a big pop. With capitulation following analyst downgrades, and company outlook drops to adjust estimates for rising fuel costs and labor costs. The discounts of this bad news is very well priced in and has capitulated with huge volume climaxes Monday after the Israel situation over the weekend. As with 9/11 and Russia invasion, the knee jerk reaction last about a week, before the entire dip is re bought up. Assuming no escalation in Iran to push oil even higher, airlines will care most about earnings and forward guidance to see demand outlook for Q4 and 2024 company guidance. With DAL reporting Thursday and more coming in next few weeks, I'd expect that the reported results for Q3 are very strong, and more importantly that Q4 and 2024 outlooks won't be as bad as markets are pricing. Resulting in a swift 10-15% bounce on many airline names. Again: The bad news is very well priced in, and markets will begin to find good value for entrance pre earnings and post earnings as we are very oversold and surprised to the upside with earnings that weren't even close to as bad as markets are expecting as well as strong forward guidance. NASDAQ:AAL TSX:AC AMEX:JETS NYSE:DAL
AMEX:JETSLong
by TheIntelligentInvestor
AUDCAD LongsI'm liking AUDCAD longs for a few reasons. Technical wise we have broken structure and we have a fib at the 61.8 from the swing high to swing low.. Looking at everything from a fundamental standpoint, there is a lot of optimism around the Aussie gaining strength from China reopenings, as well as a Hawkish RBA. Canada on the other hand has decided to pause rates and might continue to do so if the BoC see that inflation is starting to decelerate as well. This trade might take some time as most aussie pairs are slower but overall I like this trade.
Long
by EricDowdell
NZDCAD ideaNZDCAD trend is bearish. But for now, this pair is on a demand area. 0.826 to 0.830 range area, so if we want to prepare to buy this currency, we must wait for the change of this downward trend to an upward trend, in this case breaking descending channel and breaking 0.8369 level as a resistance and pullback to this level can be prepared to a buy opportunity. But if we don't consider the demand area and give more credit to the descending channel and sellers' pressure, the price reaching the 0.833 area can be attractive for reselling. In this case, the next demand area at 0.815 rates can be your Take profit.
by Alisabbaghi