Canadian Dollar: USD/CAD (CAD=X) Inches Higher
The Canadian dollar is starting the week on a firm note. Friday’s domestic employment report didn’t do anything to prevent the Bank of Canada from promising an interest-rate hike for Wednesday. In fact, it may have encouraged the central bank. Statistics Canada reported 31,900 new jobs were created in June, fully erasing the April and May declines. Nevertheless, it wasn’t all “sunshine and unicorns.” Most of the job gains were part-time, and the unemployment rate rose to 6.0% from 5.8%. Some economists have attributed the rise in the unemployment rate to “more people looking for work,” which is one of those impossible-to-prove statistics.
The domestic data wasn’t enough to boost the Canadian dollar by itself. It needed help and got it from what many believe was a disappointing U.S. employment report. Non-Farm payrolls rose 213,000 in June, beating the forecast for a 195,000 increase. However, the unemployment rate rose, and average hourly earnings declined, leading to broad U.S. dollar selling.
Overall, the bias in prices is: Sideways.
The projected upper bound is: 1.33.
The projected lower bound is: 1.29.
The projected closing price is: 1.31.
A white body occurred (because prices closed higher 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 32 white candles and 17 black candles for a net of 15 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 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 25.2525. This is not an overbought or oversold reading. The last signal was a buy 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 49.27. 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 8 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 -80. This is not a topping or bottoming area. The last signal was a buy 0 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 7 period(s) ago.
Rex Takasugi – TD Profile
FOREX CAD= closed up 0.000 at 1.311. Volume was 97% below average (consolidating) and Bollinger Bands were 11% narrower than normal.
Open High Low Close Volume___
1.310 1.312 1.310 1.311 2,330
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 1.32 1.30 1.28
Volatility: 8 9 9
Volume: 78,346 88,497 81,879
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 2.7% above its 200-period moving average and is in an downward 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 bearish on CAD= and have had this outlook for the last 0 periods.