Canadian Dollar: USD/CAD (CAD=X) opportunity for an eventual up-move towards reclaiming the 1.3400 round figure mark

Canadian Dollar: USD/CAD (CAD=X) opportunity for an eventual up-move towards reclaiming the 1.3400 round figure mark

Canadian Dollar: USD/CAD (CAD=X) opportunity for an eventual up-move towards reclaiming the 1.3400 round figure mark

 •  The pair built on last week’s strong up-move and continued scaling higher through the mid-European session on Tuesday to hit multi-week tops in the last hour.

   •  Yesterday’s bullish break through a short-term descending trend-line resistance was seen as a key trigger for bullish traders and a follow-through up-move on Tuesday.

   •  Technical indicators on the 1-hourly chart pointed to slightly overbought conditions and seemed to be the only factor capping any subsequent up-move beyond mid-1.3300s.

   •  However, oscillators on the 4-hourly chart maintained their bullish bias and have just started gaining positive traction on the daily chart, supporting dip-buying interest.

   •  Hence, any pull-back towards the resistance break-point might now be seen as a buying opportunity for an eventual up-move towards reclaiming the 1.3400 round figure mark.

Overall, the bias in prices is: Sideways.

By the way, prices are vulnerable to a correction towards 1.33.

The projected upper bound is: 1.35.

The projected lower bound is: 1.32.

The projected closing price is: 1.34.

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 27 white candles and 22 black candles for a net of 5 white candles.

Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.

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 90.7330. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 9 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 60.62. 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 45 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 165.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 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 buy 3 period(s) ago.

Rex Takasugi – TD Profile

FOREX CAD= closed up 0.002 at 1.336. Volume was 53% below average (consolidating) and Bollinger Bands were 25% narrower than normal.

Open High Low Close Volume___
1.334 1.338 1.334 1.336 43,604

Technical Outlook
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish

Moving Averages: 10-period 50-period 200-period
Close: 1.32 1.33 1.32
Volatility: 8 8 8
Volume: 109,731 99,892 89,779

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 1.5% above its 200-period moving average and is in an upward trend. Volatility is high 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 12 periods.

The following two tabs change content below.
HEFFX has become one of Asia’s leading financial services companies with interests in Publishing, Private Equity, Capital Markets, Mining, Retail, Transport and Agriculture that span every continent of the world. Our clearing partners have unprecedented experience in Equities, Options, Forex and Commodities brokering, banking, physical metals dealing, floor brokering and trading.

You must be logged in to post comments :  
CONNECT WITH