Canadian Dollar: USD/CAD (CAD=X) Yawns on Mixed Construction Numbers

Canadian Dollar: USD/CAD (CAD=X) Yawns on Mixed Construction Numbers

Canadian Dollar: USD/CAD (CAD=X) Yawns on Mixed Construction Numbers

Canada released mixed construction numbers on Tuesday. Housing starts fell to 221 thousand in September, down from 227 thousand a month earlier. There was more positive news from building permits, which jumped 6.1% in August, crushing the estimate of 2.3%. The Canadian dollar showed little reaction to the mixed releases.

Technical Analysis

USD/CAD remains range-bound this week. The pair tested resistance at 1.3320 earlier in the day. Above, we find resistance at 1.3360, which was last tested in early September. On the downside, there is support at 1.3280 – this line was relevant in the second half of September.

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 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 27 white candles and 23 black candles for a net of 4 white 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 75.4930. This is not an overbought or oversold reading. The last signal was a sell 1 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 58.36. 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 68 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 102.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 20 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 5 period(s) ago.

Rex Takasugi – TD Profile

FOREX CAD= closed down -0.000 at 1.332. Volume was 99% below average (consolidating) and Bollinger Bands were 42% narrower than normal.

Open     High      Low     Close     Volume___
1.332 1.333 1.332 1.332 718
Technical Outlook 
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 1.33 1.33 1.33
Volatility: 5 5 6
Volume: 60,239 70,432 86,802

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% above its 200-period moving average and is in an upward trend. Volatility is low 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 bullish on CAD= and have had this outlook for the last 4 periods.

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