Canadian Dollar: USD/CAD (CAD=X) ranging just below downtrend resistance– breakout targets well-defined

Canadian Dollar: USD/CAD (CAD=X) ranging just below downtrend resistance– breakout targets well-defined

Canadian Dollar: USD/CAD (CAD=X) ranging just below downtrend resistance– breakout targets well-defined

The Canadian Dollar is virtually unchanged against the US Dollar since the start of the week with price carving the weekly opening-range just below downtrend resistance. These are the updated targets and invalidation levels that matter on the USD/CAD charts.

Technical Outlook: In my last Canadian Dollar Price Outlook we noted to, “look for possible exhaustion on a stretch towards 1.3284/88 IF reached,” as USD/CAD was approaching downslope resistance. Price registered a high just above the figure with the advance unable to mark a daily close above.

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 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 30 white candles and 20 black candles for a net of 10 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 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 36.0166. This is not an overbought or oversold reading. The last signal was a sell 7 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 52.44. 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 59 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 51. This is not a topping or bottoming area. The last signal was a buy 11 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 6 period(s) ago.

Rex Takasugi – TD Profile

FOREX CAD= closed down -0.000 at 1.326. Volume was 97% below average (consolidating) and Bollinger Bands were 21% narrower than normal.

Open     High      Low     Close     Volume___
1.327 1.327 1.326 1.326 2,224
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: 5 5 6
Volume: 64,668 69,471 86,621

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 14 periods.

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