Canadian Dollar: USD/CAD (CAD=X) rallies towards previous highs

Canadian Dollar: USD/CAD (CAD=X) rallies towards previous highs

Canadian Dollar: USD/CAD (CAD=X) rallies towards previous highs

USD/CAD has been rebounding over the early part of the week, with the price moving closer to the previous peak of $1.3445.

The ability to break through that level will provide us with a lot of information, given the recent question marks that come with the break below $1.3182 earlier this month. As such, a break above $1.3445 would provide a continuation signal, yet until that break happens, there is a chance we could fall lower to raise doubts once again.

Overall, the bias in prices is: Upwards

By the way, prices are vulnerable to a correction towards 1.31.

The projected upper bound is: 1.35.

The projected lower bound is: 1.32.

The projected closing price is: 1.34.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 29 white candles and 21 black candles for a net of 8 white candles.

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 73.9581. This is not an overbought or oversold reading. The last signal was a sell 19 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 60.59. 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 119 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 96. 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 5 period(s) ago.

Rex Takasugi – TD Profile

FOREX CAD= closed down -0.002 at 1.337. Volume was 82% below average (consolidating) and Bollinger Bands were 6% wider than normal.

Open High Low Close Volume___
1.339 1.340 1.337 1.337 15,842

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

Moving Averages: 10-period 50-period 200-period
Close: 1.33 1.32 1.30
Volatility: 8 7 8
Volume: 82,231 88,114 88,355

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 2.7% 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 44 periods.

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