Canadian Dollar: USD/CAD (CAD=X) Scratches Higher
The Canadian dollar managed to scratch out a small gain overnight, and domestic developments did not have anything to do with the move.
The Canadian dollar got a lift from a shift in global risk sentiment, which turned positive on coronavirus developments.
China reported that the number of new coronavirus cases since January declined. The news supported the view of Chinese epidemiologist Zhong Nanshan who predicted that the outbreak would peak in February. The comments stoked risk-seeking trades and in that environment, oil prices, global equity indexes and commodity currencies, including the Canadian dollar, rallied.
U.K. Chancellor of the Exchequer Sayed Javid expects a “permanent equivalence” agreement for the “City” financial services industry. E.U. Chief Negotiator Michel Barnier replied, “don’t kid yourself.”
World Health Organization (WHO) officials warned about getting too optimistic. The Head of the Global Outbreak and Response Network said the coronavirus “has spread to other places where it is just the beginning of the outbreak.” Singapore, for example, has 47 cases, with hundreds of cases reported in other countries. Those concerns were ignored.
The New Zealand dollar started the Toronto session as the best performing currency against the U.S. dollar today. NZD/USD rallied from $0.6403 to $0.6484 after the Reserve Bank of New Zealand appeared to adopt a neutral to hawkish monetary policy outlook. The RBNZ left the Overnight Cash Rate (OCR) unchanged at 1.00%, which was widely expected. The central bank does not expect the coronavirus to have a lasting negative impact on economic growth. Their economic outlook was upbeat and cited several factors that support growth, which led to the RBNZ forecasting a rate hike in 2021.
AUD/USD climbed on the back of the improved risk tone, rising from 0.6713 to 0.6746. Price gains could accelerate on a decisive break of resistance in the $0.6770 zone.
There are not any top-tier economic data releases from Canada or the U.S. Canadian dollar direction will continue to be driven by oil price moves and risk sentiment.
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: 1.32.
The projected closing price is: 1.33.
The projected closing price is: 1.33.
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.
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.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 25.4686. This is not an overbought or oversold reading. The last signal was a sell 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 59.31. 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 2 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 2. This is not a topping or bottoming area. The last signal was a sell 2 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 0 period(s) ago.
Rex Takasugi – TD Profile
FOREX CAD= closed up 0.000 at 1.325. Volume was 95% below average (consolidating) and Bollinger Bands were 30% wider than normal.
Open High Low Close Volume___
1.325 1.326 1.324 1.325 2,469
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 1.33 1.31 1.32
Volatility: 4 4 5
Volume: 49,980 47,658 64,958
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.
FOREX CAD= is currently 0.3% above its 200-period moving average and is in an upward trend. Volatility is Our volume indicators reflect moderate flows of volume into CAD= (mildly bullish). Our trend forecasting oscillators are currently bullish on CAD= and have had this outlook for the last 16 periods.