Canadian Dollar: USD/CAD (CAD=X) Rises After Unexpected Jobs Gain

Canadian Dollar: USD/CAD (CAD=X) Rises After Unexpected Jobs Gain

Canadian Dollar: USD/CAD (CAD=X) Rises After Unexpected Jobs Gain

The loonie rose after the release of the August jobs report. The Canadian economy added 81,100 jobs, beating the expectations of a 23,800 gain. Full time and part time employment saw gains, but it was the part time sector where most of the gains came from.

usdcad Canadian dollar graph, September 6, 2019

The USD/CAD is headed towards the 1.32 price level after the NFP underperformed with a 130,000 job gains in the United States in August. The forecast called for a range above 150,000. Employment continues to be solid, but the US dollar is sensitive to data misses as the Fed is getting ready to cut rates this month. This does not help their case of patience and the market will focus on next week’s inflation and retail sales data.

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: 1.33.

The projected lower bound is: 1.31.

The projected closing price is: 1.32.

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 28 white candles and 22 black candles for a net of 6 white candles.

A long upper shadow occurred. This is typically a bearish signal (particularly when it occurs near a high price level, at resistance level, or when the security is overbought).

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 11.2481. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 29 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 40.28. 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 46 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 -177.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 3 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 sell 10 period(s) ago.

Rex Takasugi – TD Profile

FOREX CAD= closed up 0.000 at 1.317. Volume was 98% below average (consolidating) and Bollinger Bands were 22% narrower than normal.

Open     High      Low     Close     Volume___
1.317 1.318 1.317 1.317 1,425
Technical Outlook 
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 1.33 1.32 1.33
Volatility: 6 5 6
Volume: 61,385 67,982 87,580

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 1.0% below 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 1 periods.

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