Canadian Dollar: USD/CAD (CAD=X) forming a rising wedge trading pattern

Canadian Dollar: USD/CAD (CAD=X) forming a rising wedge trading pattern

Canadian Dollar: USD/CAD (CAD=X) forming a rising wedge trading pattern

The USD/CAD pair marked the daily opening on Monday near 1.3170 level with a Doji Candlestick formation, generating a trend reversal price action. However, the bears could drag the Loonie pair only up to 1.3158 level. From there, the bulls grabbed the opportunity to uplift the pair, making it reach the daily high near 1.3183 level.

In the meanwhile, Canada’s top export item, Crude Oil was heading south in the Asian trading session. The commodity’s price value slipped on the backdrop of easing US-Iran tensions over the positive outcome of the weekend talks between the parties. Investors also jitter over the upcoming US-Sino trade talk scheduled this week.

Overall, the bias in prices is: Sideways.

The projected upper bound is: 1.33.

The projected lower bound is: 1.30.

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 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 26 white candles and 24 black candles for a net of 2 white 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.

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 68.8622. This is not an overbought or oversold reading. The last signal was a sell 0 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 52.89. 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 17 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 92. This is not a topping or bottoming area. The last signal was a sell 0 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 15 period(s) ago.

Rex Takasugi – TD Profile

FOREX CAD= closed up 0.000 at 1.316. Volume was 98% below average (consolidating) and Bollinger Bands were 20% narrower than normal.

Open     High      Low     Close     Volume___
1.316 1.317 1.316 1.316 1,974
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: 4 6 7
Volume: 54,630 72,199 90,184

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 1.0% 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 3 periods.

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