Canadian Dollar: USD/CAD (CAD=X) faces BoC rate decision and November employment data

Canadian Dollar: USD/CAD (CAD=X) faces BoC rate decision and November employment data

Canadian Dollar: USD/CAD (CAD=X) faces BoC rate decision and November employment data

The Pound-to-Canadian-Dollar rate is tipped by technical analysts to remain supported in the days ahead, although an apparent ebbing of support for Prime Minister Boris Johnson’s party in pre-election opinion polls could mean the British currency is vulnerable to losses early in the new week.

Sterling gained almost half a percent on the Canadian Dollar and other currencies last week, making it the second best performer among major currencies, but finished on a softer footing Friday.

This was after being resecued aided by YouGov predictions of election victory for Prime Minister Boris Johnson. The Pound is now up 8.85% from its early-August lows beneath the 1.59 handle and has been tipped to remain well supported close to its current levels in the days ahead. 

“GBP/CAD continues to test a key resistance level around C$1.72, near 7-month highs,” says George Vessey, a strategist at Western Union. “Up 2.5% since this time last month, GBP/CAD remains in an upward trend channel with support around the C$1.7070 zone likely to be a tough nut to crack.”

Technical Indicators

Overall, the bias in prices is: Sideways.

By the way, prices are vulnerable to a correction towards 1.32.

The projected upper bound is: 1.34.

The projected lower bound is: 1.32.

The projected closing price is: 1.33.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 23 white candles and 26 black candles for a net of 3 black 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.

Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.

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 34.7367. 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 58.01. 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 106 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 23. This is not a topping or bottoming area. The last signal was a sell 4 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 sell 0 period(s) ago.

Rex Takasugi – TD Profile

FOREX CAD= closed up 0.000 at 1.328. Volume was 99% below average (consolidating) and Bollinger Bands were 26% narrower than normal.

Open     High      Low     Close     Volume___
1.328 1.328 1.327 1.328 427
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 1.33 1.32 1.33
Volatility: 4 5 6
Volume: 44,774 64,122 79,608

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 0.0% below its 200-period moving average and is in an upward 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 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 14 periods.

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