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Usdcaddaily

USD/CAD Forecast: USD Running Out of Steam Against LoonieThe US dollar has rallied initially during the trading session on Thursday but looks to be running out of momentum just above the 1.26 level. By doing so, we have formed a bit of a shooting star in an area that previously had been rather resistive, so it is worth noting and paying close attention to. Quite frankly, oil looks as if it is ready to turn around as well, so if we see a bounce in the oil market, we are very likely going to see this market pullback. The shooting star will attract a lot of attention, but that is not a guarantee that we are going to fall apart. It is worth noting that the top of the candlestick was identical to the top of a previous shooting star back on October 6, so there is obviously a lot of selling pressure right around the 1.2650 level. A pullback is probably necessary, but the question now is whether or not this pullback is going to be of a larger nature, or if it is just simply going to be a slight pullback in what has been a rather strong move to the upside? The 200 day EMA currently sits just below, so there is a certain amount of attention paid to that. I think a pullback that slices through there rather handily might get sellers involved, but as things stand right now this simply looks like a market that is a little overextended. This means that we may get a day or two of negativity, followed by a resumption of the trend. If we were to break down below the 1.25 level, then I might be more convinced that we break down significantly. This would almost certainly have to coincide with the oil market getting a lot stronger, but even then it is not a guarantee. After all, we have seen oil rally right along with the US dollar at times, so you should always remember that the oil to Canadian dollar correlation is not 100%. In fact, there are no 100% correlations out there. Regardless, this is a market that looks like it is a bit tired so I suspect that the next 24 hours will be more of a negative attitude than anything else, but whether or not it truly matters is a completely different discussion.
by SmoothJB
1
Is the channel going to hold for the USDCAD?The dollar cad tested the bottom of the channel like we predicted and moved up higher, it has now tested the top of the channel and faced some rejection, are we going to see a break out? BEAR CASE Until proven otherwise, our bias is to the downside. We expect to see it test the bottom of the channel once more and if it faces rejection there or before there, we know a major upmove is coming for this pair. BULL CASE If a breakout happens, we're targeting 127 to put up some resistance.
by IkanBilisCapital
UsdCad- Great R:R medium term tradeUndoubtedly, since mid-March, CAD has dominated the market, and with USD has strengthened more than 2500 pips, reaching a local low at 1.2 at the end of May. A first leg of correction has followed and a new drop after this. However, this new drop has found bids in 1.23 zone and we have 2 Doji candles on our weekly chart that can signal a higher low is in place. I expect a new leg up from UsdCad and the price could reach and test 1.3 resistance. Such trade can have a 1:5 risk to reward ratio and is negated with a daily close under the last recent low
Long
by Mihai_Iacob
8
USDCAD more downside coming!The dollar cad traded is largely range bound this week. The coming week should see a break of trend to either side but our bias is to the downside as structurally on the longer term charts, it looks bearish. BEAR CASE If bears find conviction, we should see a retest of 1.2 before some consolidation and more downside. BULL CASE As we enter the first week of November, do not be surprised to see price retest 1.25 before the bear case is fulfilled.
Short
by IkanBilisCapital