Canadian Dollar: USD/CAD (CAD=X) Ahead – Canadian Employment Data

Canadian Dollar: USD/CAD (CAD=X) Ahead – Canadian Employment Data

Canadian Dollar: USD/CAD (CAD=X) Ahead – Canadian Employment Data

USD/CAD is trading sideways in Thursday trade. In the North American session, the pair is trading at 1.3187, up 0.01%.

Ahead – Canadian Employment Data

Traders should be prepared for possible volatility from USD/CAD on Friday, with the release of key employment reports. The employment change indicator is projecting 14.7 thousand new jobs, while the unemployment rate is expected to remain at 5.5.%.

Technical Analysis

USD/CAD has been range-bound in November, as the pair has been unable to sustain much movement in either direction. However, the round number of 1.3200 is under pressure in resistance and could be tested before the end of the week. This is followed by resistance at 1.3225. On the downside, the 50-EMA is just below the pair, at 1.3155. This line could provide support in the short-term. Lower, we find support at 1.3095.

Technical Indicators

Overall, the bias in prices is: Sideways.

The projected upper bound is: 1.33.

The projected lower bound is: 1.31.

The projected closing price is: 1.32.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 26 white candles and 24 black candles for a net of 2 white candles.

A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 72.7939. This is not an overbought or oversold reading. The last signal was a buy 8 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 50.67. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 90 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 77. This is not a topping or bottoming area. The last signal was a sell 1 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 6 period(s) ago.

Rex Takasugi – TD Profile

FOREX CAD= closed up 0.000 at 1.317. Volume was 98% below average (consolidating) and Bollinger Bands were 14% narrower than normal.

Open     High      Low     Close     Volume___
1.317 1.317 1.316 1.317 1,135
Technical Outlook 
Short Term: Overbought
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 1.31 1.32 1.33
Volatility: 4 5 6
Volume: 71,618 68,052 83,674

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

FOREX CAD= is currently 0.8% below its 200-period moving average and is in an downward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. Our volume indicators reflect volume flowing into and out of CAD= at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on CAD= and have had this outlook for the last 17 periods.

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