USD/CAD (CAD=X) pares losses as July rate hike odds oscillate near 50 pct
- Canadian dollar at C$1.3336, or 74.99 U.S. cents
- Price of U.S. oil rises 3.2 percent
- Bond prices rise across the yield curve
The Canadian dollar weakened to a one-year low against its U.S. counterpart on Wednesday before paring some losses as remarks by Bank of Canada Governor Stephen Poloz left investors guessing about prospects for an interest rate hike next month.
At 5 p.m. EDT (2100 GMT), the Canadian dollar was trading 0.2 percent lower at C$1.3336 to the greenback, or 74.99 U.S. cents.
The currency touched its weakest intraday since June 12, 2017 at C$1.3386.
Overall, the bias in prices is: Upwards.
By the way, prices are vulnerable to a correction towards 1.30.
The projected upper bound is: 1.35.
The projected lower bound is: 1.32.
The projected closing price is: 1.33.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 8 white candles and 2 black candles for a net of 6 white candles. During the past 50 bars, there have been 34 white candles and 15 black candles for a net of 19 white candles.
A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.
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 53.9263. This is not an overbought or oversold reading. The last signal was a sell 3 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 70.82. This is where it usually tops. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 4 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 75. This is not a topping or bottoming area. The last signal was a sell 3 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 buy 12 period(s) ago.
Rex Takasugi – TD Profile
FOREX CAD= closed down -0.001 at 1.333. Volume was 97% below average (consolidating) and Bollinger Bands were 51% wider than normal.
Open High Low Close Volume___
1.334 1.334 1.332 1.333 3,128
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 1.33 1.30 1.27
Volatility: 6 8 9
Volume: 82,954 88,739 81,134
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 4.6% above its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. 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. Our momentum oscillator is currently indicating that CAD= is currently in an overbought condition.
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