Canadian Dollar: USD/CAD (CAD=X) resurfacing concerns over the slowdown in the global economic growth

Canadian Dollar: USD/CAD (CAD=X) resurfacing concerns over the slowdown in the global economic growth

Canadian Dollar: USD/CAD (CAD=X) resurfacing concerns over the slowdown in the global economic growth

Resurfacing concerns over the slowdown in the global economic growth today weighed on the market sentiment and hurt the demand for risk-sensitive commodities. Additionally, reports of U.S. President Trump not planning to meet his Chinese counterpart Xi before the March deadline reminded investors of the potential negative impact of the U.S. – China trade conflict on the oil demand outlook. At the moment, the barrel of West Texas Intermediate is losing nearly 3% on the day at $52.25.

Meanwhile, the dominating risk-off mood ramped up the demand for safe US Treasury Bonds and drove their yields lower to pull the US Dollar Index away from its daily highs, which keeps the pair’s gains capped for the moment. Nevertheless, the DXY remains on track to close the day modestly higher near 96.50.

On Friday, Statistics Canada will publish the employment data. Previewing the event, “We also look for a recovery in private sector job growth following last month’s rotation into self-employment. Job growth of 15k should leave the unemployment rate unchanged at the current cycle low of 5.6% while wage growth should firm modestly to 1.7% y/y, still well below levels associated with a tight labour market,” said TD Securities analysts in a recently published report.

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: 1.31.

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 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 20 black candles for a net of 9 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 71.4514. This is not an overbought or oversold reading. The last signal was a buy 2 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 53.52. 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 26 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 41. This is not a topping or bottoming area. The last signal was a buy 2 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 0 period(s) ago.

Rex Takasugi – TD Profile

FOREX CAD= closed up 0.009 at 1.330. Volume was 15% above average (neutral) and Bollinger Bands were 11% narrower than normal.

Open High Low Close Volume___
1.321 1.332 1.320 1.330 102,621

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

Moving Averages: 10-period 50-period 200-period
Close: 1.32 1.34 1.31
Volatility: 10 8 8
Volume: 109,325 89,050 87,836

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 1.3% above its 200-period moving average and is in an downward 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 bearish on CAD= and have had this outlook for the last 22 periods. Our momentum oscillator has set a new 14-period high while the security price has not. This is a bullish divergence.

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