Canadian Dollar: USD/CAD (CAD=X) chart highlights uptrend correction
On Feb 10, USD/CAD rallied to its highest price in four months at 1.3329. However, the market retreated last week as some bulls seemed to cut back. This week, the pair rebounded from 1.3225 – its lowest level nearly three weeks.
Alongside that, the Relative Strength Index (RSI) slipped from 71 to 57 pointing out that uptrend move were losing momentum.
A close below the low end of the zone could lead more bulls to pull out of the market opening the door for the price to fall towards 1.3104. Further close below this level may encourage USDCAD bears to press towards 1.3015. Yet, the weekly support level marked on the chart (zoomed in) should be considered as some traders may exit/join the market around these points.
In turn, a close above the high end of the zone reflects a possible comeback from USDCAD bulls. In that scenario, they could push towards 1.3382. That said, the daily and weekly resistance level underscored on the chart would be worth monitoring.
Overall, the bias in prices is: Sideways.
By the way, prices are vulnerable to a correction towards 1.32.
The projected upper bound is: 1.33.
The projected lower bound is: 1.32.
The projected closing price is: 1.33.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 28 white candles and 22 black candles for a net of 6 white candles.
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 34.8025. This is not an overbought or oversold reading. The last signal was a sell 6 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 57.81. 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 6 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 -43. This is not a topping or bottoming area. The last signal was a sell 6 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 3 period(s) ago.
Rex Takasugi – TD Profile
FOREX CAD= closed down -0.000 at 1.326. Volume was 97% below average (consolidating) and Bollinger Bands were 19% narrower than normal.
Open High Low Close Volume___
1.326 1.326 1.325 1.326 1,608
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 1.33 1.31 1.32
Volatility: 3 4 5
Volume: 43,546 47,783 64,037
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 0.3% 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 moderate flows of volume into CAD= (mildly bullish). Our trend forecasting oscillators are currently bullish on CAD= and have had this outlook for the last 20 periods.