Canadian Dollar: USD/CAD (CAD=X) ISM Non-Manufacturing PMI (Jan.) was released earlier and missed projections
The ISM Non-Manufacturing PMI (Jan.) was released earlier and missed projections. The figure came in at 56.7, beneath estimates (57.2) and the previous report (58.0). Today’s ISM numbers continue the trend of lagging indicators that suggest a cooling of the U.S. economy. Thus far, the market fallout from ISM Non-Manufacturing PMI has been minimal. The U.S. indices remain in the green and USD is on the bull, specifically against the Canadian dollar.
If you missed today’s ISM release, be sure to check out our economic calendar feature here at FX Leaders. We had live coverage and analysis of the event as it hit the newswires. It is a great tool for staying one step ahead of the fast-paced forex.
USD/CAD Technical Outlook
Although the ISM report disappointed analysts, the Greenback is still putting in a solid session across the forex. Gains in the USD/CAD have taken rates to a test of 1.3150, a key Fibonacci retracement level.
Overall, the bias in prices is: Downwards.
By the way, prices are vulnerable to a correction towards 1.33.
The projected upper bound is: 1.33.
The projected lower bound is: 1.30.
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 28 white candles and 21 black candles for a net of 7 white candles.
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 20.9655. 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 35.37. 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 24 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 -100.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 7 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 4 period(s) ago.
Rex Takasugi – TD Profile
FOREX CAD= closed up 0.001 at 1.312. Volume was 19% above average (neutral) and Bollinger Bands were 13% narrower than normal.
Open High Low Close Volume___
1.311 1.315 1.310 1.312 105,357
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 1.32 1.34 1.31
Volatility: 8 7 8
Volume: 109,921 88,368 87,753
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 0.0% below 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 20 periods.
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