Canadian Dollar: USD/CAD (CAD=X) Facing Many Hurdles
GBP/USD climbed higher and settled above the 1.3210 resistance level. USD/CAD corrected higher, but it failed to break the key 1.3370 resistance area and later declined.
Important Takeaways for GBP/USD and USD/CAD
- The British Pound gained bullish momentum and traded above the 1.3200 resistance area.
- There is a major bullish trend line formed with support at 1.3270 on the hourly chart of GBP/USD.
- USD/CAD broke a key bearish trend line with resistance at 1.3330 on the hourly chart.
- The pair failed to break the 1.3370 resistance trimmed most its recent gains.
USD/CAD Technical Analysis
The US Dollar declined heavily and broke the 1.3400 and 1.3350 support levels against the Canadian Dollar. The USD/CAD pair even broke the 1.3300 support level before buyers appeared near the 1.3290 level.
A low was formed at 1.3289 and later the pair formed a solid support base near the 1.3300 level. Finally, there was an upside break above 1.3320 level and a key bearish trend line with resistance at 1.3330 on the hourly chart.
Overall, the bias in prices is: Sideways.
The projected upper bound is: 1.35.
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 26 white candles and 23 black candles for a net of 3 white candles.
An engulfing bearish line occurred (where a black candle’s real body completely contains the previous white candle’s real body). The engulfing bearish pattern is bearish during an uptrend (which appears to be the case with FOREX CAD=). It then signifies that the momentum may be shifting from the bulls to the bears.
If the engulfing bearish pattern occurs during a downtrend, it may be a last engulfing bottom which indicates a bullish reversal. The test to see if this is the case is if the next candle closes above the bottom the current (black) candle’s real body.
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 29.2633. This is not an overbought or oversold reading. The last signal was a buy 1 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 52.15. 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 53 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 -2. This is not a topping or bottoming area. The last signal was a sell 5 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 0 period(s) ago.
Rex Takasugi – TD Profile
FOREX CAD= closed down -0.001 at 1.332. Volume was 66% below average (consolidating) and Bollinger Bands were 11% wider than normal.
Open High Low Close Volume___
1.335 1.335 1.330 1.332 32,890
Short Term: Neutral
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: 110,737 106,921 90,747
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 1.0% above its 200-period moving average and is in an upward trend. Volatility is relatively normal 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 20 periods.