Technical Analysis – USDCAD transmits negative prognosis, weakening prevails

Posted on August 21, 2020 at 6:32 am GMT

USDCAD appears to have declared a negative route below the descending line drawn from the 50-month peak of 1.4667. The bearish tone of the 50- and 100-day simple moving averages (SMAs) and the falling mid-Bollinger band (20-day SMA), which has merged with the diagonal line, further aid the broader negative outlook. The short-term oscillators are uttering temporary mixed signals in directional momentum. The MACD, in the negative region, is marginally above its red signal line as they both follow a [..]


Technical Analysis – USDCAD relays gloomy forecast, despite foothold

Posted on August 18, 2020 at 2:23 pm GMT

USDCAD is conveying a negative trajectory despite its recent footing around the near seven-month low of 1.3153. The prevailing negative bearing of the simple moving averages (SMAs) further supports this view. The short-term oscillators are currently reflecting conflicting signals of directional momentum although on a broader scale, the picture is still tilting negative. The MACD, in the negative region, is falling below its red trigger line, while the RSI has climbed back above the 30 mark. The stochastic oscillator appears [..]


Canadian inflation and retail sales could push loonie even higher – Forex Preview

Posted on August 18, 2020 at 12:33 pm GMT

Canada will publish its inflation data for the month of June at 1230 GMT on Wednesday before releasing retail sales figures at the same time on Friday. Given the significant rebound in the preceding month, the retail sales report could be a more important market mover among data releases for the loonie, which is expected to move in new upside paths. Has Covid-19 come under control? In Canada, the virus crisis has come somewhat under control as indicated by the latest unemployment numbers. The nation’s economy added [..]


Week Ahead – Vaccine hopes torment yen, all eyes on Congress

Posted on August 14, 2020 at 11:48 am GMT

It’s a relatively quiet week, with the main highlights being the Eurozone’s PMIs and the latest FOMC minutes. In the political arena, American and Chinese negotiators will meet over the weekend to review the ‘phase one’ trade deal. For markets though, the most crucial drivers will be whether US lawmakers can break the deadlock in the stimulus negotiations, and whether enthusiasm around a vaccine will keep pushing global yields higher, crushing the yen. Will markets have to scream first, before [..]


Technical Analysis – USDCAD seems to be in a make-or-break situation

Posted on August 14, 2020 at 7:39 am GMT

USDCAD has been trading bearish for five consecutive weeks but this time the price is in a sensitive territory, near a long-term supportive trendline that has been rejecting negative corrections since September 2017. Hence, it would be interesting to see if this is the area in which the pair can stage a much-needed recovery or trigger another bearish wave. The weakness in the RSI and the Stochastics keep the short-term bias negative for now, though the indicators are not far from their oversold [..]


Daily Market Comment – Vaccine fever shakes markets, RBNZ shoots kiwi down

Posted on August 12, 2020 at 9:17 am GMT

Vaccine news catapult global yields higher, push stocks lower Gold falls without a parachute – has it peaked? Dollar inches higher amidst the turbulence, but Fed speakers are a risk RBNZ expands QE and opens door to negative rates, kiwi stumbles   Putin says Russia has developed the first vaccine President Vladimir Putin unleashed mayhem in financial markets on Tuesday, after he announced to the world that Russia has developed the first successful coronavirus vaccine. Global bond yields erupted higher [..]


Technical Analysis – USDCAD under negative tension; sentiment remains bearish

Posted on August 11, 2020 at 9:15 am GMT

USDCAD has pushed under the flat blue Kijun-sen line at 1.3313. An improvement from the 5½-month low of 1.3232 was capped by the Ichimoku cloud, which had merged with the falling 100-period simple moving average (SMA). This resulted in realignment with the bigger negative bearing, something also backed by the falling SMAs and the short-term oscillators, as well as the downward direction of the red Tenkan-sen line. The MACD is under its red trigger line but just above the zero [..]


Daily Market Comment – Dollar gets a second wind after US payrolls, can it last?

Posted on August 10, 2020 at 10:44 am GMT

Decent US jobs report triggers a short squeeze in the dollar Is the reversing trend in European/American virus cases going to show up in euro/dollar? Trump signs executive orders to bypass Congress and provide more stimulus Muted market reaction to this – does it imply less stimulus overall? Dollar shorts get squeezed after payrolls The world’s reserve currency got a second wind on Friday, recovering some lost ground after a decent US employment report saw traders cover or trim some [..]


Daily Market Comment – Trump fans the geopolitical flames ahead of NFP

Posted on August 7, 2020 at 10:49 am GMT

Nonfarm payrolls to set the tone for markets, along with stimulus negotiations Trump fires another salvo at Beijing, bans transactions with Tencent, moves to delist Chinese firms Geopolitical worries keep dollar alive, Wall Street set to snap 5-day winning streak Nonfarm payrolls: A most uncertain one The main event today will be the US employment report for July. The consensus is for the US economy to have added another 1.6 million jobs, pushing the unemployment rate down to 10.5%, from [..]


Technical Analysis – USDCAD downside risks remain despite positive signals

Posted on August 7, 2020 at 9:07 am GMT

USDCAD is maintaining its negative course below the restrictive line, although it has found some footing at the 1.3232 level. The negatively charged Ichimoku lines and the recent bearish crossover of the 200-day simple moving average (SMA) by the 50-day one may keep the negative bias in play for a while longer. That said, the recent improvement in price is reflected in the short-term oscillators, which promote additional advances. The MACD, in the negative region, has moved above its red [..]

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