USD/CAD (CAD=X) market continues to hang about the 1.30 level

USD/CAD (CAD=X) market continues to hang about the 1.30 level

USD/CAD (CAD=X) market continues to hang about the 1.30 level

The US dollar has gone back and forth during the trading session on Tuesday, as we await oil inventory figure numbers, a resolution to the recent spat between Justin Trudeau and Donald Trump, and of course the overall economic situation in the two countries.

Interest rate differentials continue to favor the United States, so therefore I think we continue to see buyers jump into this market. We gapped higher at the open during the week, and that of course is a bullish sign. I think it’s only a matter of time before we break out to the upside, but if we were to turn around and break down below the 1.29 handle, that could unwind this market a bit further. On a break higher, I would anticipate that there is a lot of noise to overcome, so it’s not going to be an easy trade. At that point, I believe that the market goes to the 1.33 level above.

Overall, the bias in prices is: Upwards.

By the way, prices are vulnerable to a correction towards 1.28.

The projected upper bound is: 1.31.

The projected lower bound is: 1.28.

The projected closing price is: 1.30.

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 30 white candles and 19 black candles for a net of 11 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 61.3690. This is not an overbought or oversold reading. The last signal was a sell 11 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 54.88. 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 63 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 24. This is not a topping or bottoming area. The last signal was a sell 1 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 0 period(s) ago.

Rex Takasugi – TD Profile

FOREX CAD= closed down -0.001 at 1.297. Volume was 96% below average (consolidating) and Bollinger Bands were 38% narrower than normal.

Open High Low Close Volume___
1.298 1.299 1.297 1.297 3,552

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

Moving Averages: 10-period 50-period 200-period
Close: 1.30 1.28 1.27
Volatility: 5 8 9
Volume: 83,651 87,907 80,128

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 2.2% 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 0 periods.

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