Canadian Dollar: USD/CAD (CAD=X) Bank of Canada Governor Poloz Speech
The market will be closely watching the Bank of Canada Governor Stephen Poloz’s comments regarding his market expectations. His view may help the market participants to predict the possible interest-rate movements. Canada has joined the US with regards to having an Inverted Yield Curve on 21 March. The difference between the short term yields and the yields on long term bonds becoming negative, posses the threat of possible economic recession.
“We don’t think it’s appropriate to be talking about cutting rates at this juncture,” said Doug Porter, chief economist at Bank of Montreal. Poloz “could take one more turn of the dovish screw, I suppose, by going completely neutral — although I believe it would be more appropriate to do that at the next decision date. ”
Overall, the bias in prices is: Sideways.
By the way, prices are vulnerable to a correction towards 1.33.
The projected upper bound is: 1.35.
The projected lower bound is: 1.31.
The projected closing price is: 1.33.
During the past 10 bars, there have been 4 white candles and 5 black candles for a net of 1 black candles. During the past 50 bars, there have been 24 white candles and 24 black candles.
A gravestone doji occurred. This often signifies a top (the longer the upper shadow, the more bearish the signal).
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.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 6.8080. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 4 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 46.86. 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 sell 64 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 -82. This is not a topping or bottoming area. The last signal was a sell 2 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 1 period(s) ago.
Rex Takasugi – TD Profile
FOREX CAD= closed unchanged at 1.331. Volume was 0% above average (neutral) and Bollinger Bands were 45% narrower than normal.
Open High Low Close Volume___
1.331 1.331 1.331 1.331 100,390
Short Term: Oversold
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 1.34 1.33 1.32
Volatility: 6 7 8
Volume: 118,035 113,724 92,481
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.
FOREX CAD= is currently 0.9% above its 200-period moving average and is in an upward trend. Volatility is low as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of CAD= at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on CAD= and have had this outlook for the last 31 periods. our momentum oscillator has set a new 14-period low while the security price has not. This is a bearish divergence.
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