Canadian Dollar: USD/CAD (CAD=X) possibility that today’s U.S. GDP release would shake up the pair

Canadian Dollar: USD/CAD (CAD=X) possibility that today’s U.S. GDP release would shake up the pair

Canadian Dollar: USD/CAD (CAD=X) possibility that today’s U.S. GDP release would shake up the pair

With no Canadian releases on the schedule, there was a possibility that today’s U.S. GDP release would shake up the lethargic Canadian currency. However, that did not happen as the third estimate release showed growth of 2.0%, which merely confirmed the second estimate reading. This points to a significant slowdown in U.S. growth in the second quarter, after robust growth in Q1 of 3.1%. This could have negative repercussions for the Canadian dollar, as the Canadian economy is heavily dependent on its U.S. neighbor.

Technical Analysis

USD/CAD remains within striking distance of the resistance at 1.3282 and this line to remain should remain relevant for the remainder of the day. The pair has tested this line but has been unable to consolidate above it. Above, there is resistance at 1.3320, which has held since September 4. On the downside, there is strong support at the round number of 1.3200.

Technical Indicators

Overall, the bias in prices is: Sideways.

By the way, prices are vulnerable to a correction towards 1.32.

The projected upper bound is: 1.34.

The projected lower bound is: 1.32.

The projected closing price is: 1.33.

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 31 white candles and 19 black candles for a net of 12 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.

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 50.2157. This is not an overbought or oversold reading. The last signal was a sell 8 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 52.84. 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 60 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 55. This is not a topping or bottoming area. The last signal was a buy 12 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 7 period(s) ago.

Rex Takasugi – TD Profile

FOREX CAD= closed down -0.000 at 1.327. Volume was 98% below average (consolidating) and Bollinger Bands were 25% narrower than normal.

Open     High      Low     Close     Volume___
1.326 1.327 1.326 1.327 1,304
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 1.33 1.32 1.33
Volatility: 3 5 6
Volume: 64,018 69,322 86,525

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 0.3% 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 15 periods.

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