Canadian Dollar: USD/CAD (CAD=X) continuing a reversal theme

Canadian Dollar: USD/CAD (CAD=X) continuing a reversal theme

Canadian Dollar: USD/CAD (CAD=X) continuing a reversal theme

On the long side of the US Dollar, USD/CAD remains of interest. I had looked at the pair again coming into this week, continuing a reversal theme that I’ve been working with from the week prior. After price action built into a falling wedge with a seeming refusal of sellers to re-test 1.3000, prices have shot higher over the past two weeks and came a mere few pips away from my final target in the zone that runs from 1.3250-1.3300.

But, as discussed in the webinar, there’s no evidence yet that this bullish theme is over, and this can keep the door open for more. The support zone identified for higher-low support, taken from 1.3185-1.3200 has already come into play. The big question now is whether buyers will be able to punch up to the 1.3250-1.3300 zone of resistance potential.

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 white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 8 white candles and 2 black candles for a net of 6 white candles. During the past 50 bars, there have been 25 white candles and 25 black candles.

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 66.6664. This is not an overbought or oversold reading. The last signal was a sell 2 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 58.28. 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 19 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 125.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 2 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 17 period(s) ago.

Rex Takasugi – TD Profile

FOREX CAD= closed up 0.002 at 1.321. Volume was 0% below average (neutral) and Bollinger Bands were 9% narrower than normal.

Open     High      Low     Close     Volume___
1.319 1.325 1.318 1.321 80,784

Technical Outlook
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bearish

Moving Averages: 10-period     50-period     200-period
Close: 1.31 1.32 1.33
Volatility: 3 6 7
Volume: 63,292 73,045 90,212

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 0.7% below 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 5 periods.

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