Canadian Dollar: USD/CAD (CAD=X) sticks to narrow range as railway strike ends

Canadian Dollar: USD/CAD (CAD=X) sticks to narrow range as railway strike ends

Canadian Dollar: USD/CAD (CAD=X) sticks to narrow range as railway strike ends

The Canadian dollar was little changed against the greenback on Tuesday as investors weighed fresh signs of progress toward a U.S.-China trade deal and a deal was reached to end a railway strike that threatened to slow Canada’s economic growth. Teamsters Canada and Canadian National Railway Co said they reached a tentative deal to end a strike at the country’s largest railroad that had entered its eighth day, disrupting supply chains across the country.

Economists estimated that a prolonged strike could have cost the Canadian economy billions of dollars.

World stocks kept record levels in sight after Beijing said negotiators had reached a “common understanding on resolving relevant problems”, but stopped short of indicating an agreement was in the offing.

Canada is a major exporter of commodities, including oil, so its economy could benefit from an improved outlook for global trade. U.S. crude oil futures were up 0.8% at $58.46 a barrel. At 9:52 a.m. (1452 GMT), the Canadian dollar was trading nearly unchanged at 1.3301 to the greenback, or 75.18 U.S. cents. The currency traded in a narrow range of 1.3298 to 1.3316.

Last Wednesday, the loonie hit its weakest intraday level since Oct. 10 at 1.3328. The currency has been pressured since October by a more dovish stance from the Bank of Canada.

Clues for the central bank’s interest rate outlook could come on Friday when data for Canada’s third quarter gross domestic product will be released.

U.S. House of Representatives Speaker Nancy Pelosi said on Monday that a version of the U.S.-Mexico-Canada trade agreement that House Democrats could back was “within range” but that they needed to conduct a final review.

Canada sends about 75% of its exports to the United States. Canadian government bond prices were higher across a flatter yield curve on Tuesday in sympathy with U.S. Treasuries. The two-year rose 1.5 Canadian cents to yield 1.575% and the 10-year was up 15 Canadian cents to yield 1.446%.

Technical Indicators

Overall, the bias in prices is: Sideways.

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 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 24 white candles and 25 black candles for a net of 1 black 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 69.6377. 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 58.31. 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 buy 102 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 80. 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 18 period(s) ago.

Rex Takasugi – TD Profile

FOREX CAD= closed down -0.002 at 1.327. Volume was 25% below average (neutral) and Bollinger Bands were 5% narrower than normal.

Open     High      Low     Close     Volume___
1.330 1.332 1.327 1.327 51,761
Technical Outlook 
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 1.33 1.32 1.33
Volatility: 4 5 6
Volume: 56,419 66,759 81,216

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 0.0% below its 200-period moving average and is in an upward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods. 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 10 periods.

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