Jump to content

USDCAD, The Bear has Returned!


Recommended Posts

On 11/12/2021 at 20:24, YEW_Trade said:

USDCAD has been on an upward momentum for quite some time and now it’s losing steam. 
The Return of the Bear is Near! 

B3260272-5C22-4FCE-87EA-828F1F79B72B.png

Hi @YEW_Trade

Thanks for sharing your analysis on USDCAD.

USD/CAD may continue to retrace the decline from the monthly high (1.2854) ahead of the FOMC rate decision on December 15, but the recent reversal in retail sentiment looks poised to persist as the exchange rate trades within broad range in the second half of 2021.

image.png

The IG Client Sentiment report shows 64.72% of traders are currently net-long USD/CAD, with the ratio of traders long to short standing at 1.83 to 1.

 

USD/CAD RATE DAILY CHART

Image of USD/CAD rate daily chart

Source: Trading View

  • Keep in mind, USD/CAD cleared the January high (1.2881) in August as an inverse head-and-shoulders formation took shape, but the exchange rate failed to defend the July low (1.2303) in October as the Relative Strength Index (RSI) dipped below 30.
  • As a result, USD/CAD may continue to trade within a broad range as the recovery from the October low (1.2288) failed to produce a test of the September high (1.2896), with a textbook RSI sell signal taking shape in December as the oscillator fell back from overbought territory to push below 70.
  • However, lack of momentum to close below the 1.2620 (50% retracement) to 1.2650 (78.6% expansion) region may push USD/CAD back towards 1.2770 (38.2% expansion), with the next area of interest coming in around 1.2830 (38.2% retracement) to 1.2880 (61.8% expansion), which largely lines up with the monthly high (1.2854).
  • Need a break of the September high (1.2896) to bring the August high (1.2949) on the radar, with the next area of interest coming in around 1.2980 (61.8% retracement) to 1.3040 (50% expansion).

Written by David Song, Currency Strategist, DailyFX

 

All the best - MongiIG

Link to comment

Canadian Dollar Technical Forecast: USD/CAD Retains a Bullish Profile Ahead of FOMC.

USD/CAD Forecast Ahead of the Canadian Inflation Data

 

USD/CAD WEEKLY OUTLOOK: BULLISH

  • USD/CAD has soared since late October, printing higher lows and higher highs on its journey north
  • Earlier this week, the price pulled back modestly, but has since rebounded after failing to break cluster support near the 1.2600 area
  • The near-term technical and fundamental bias for USD/CAD is positive

Full article by Written by Diego Colman, Contributor. DailyFX

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • General Statistics

    • Total Topics
      20,018
    • Total Posts
      88,016
    • Total Members
      69,013
    • Most Online
      7,522
      10/06/21 10:53

    Newest Member
    Amyy
    Joined 28/09/22 02:42
  • Posts

    • Stocks: AAPL, AMZN, NVDA, TSLA, GOOGL, BRK.B, SQ, META, NFLX, ENPH, MSFT, BAC, JPM. Elliott Wave  US Stock Bear Market: AMZN, AAPL, NVDA, TSLA, GOOGL, BRK.B, SQ, META, NFLX, ENPH, MSFT, BAC, JPM, GS. Elliott Wave Technical Analysis  Stock Makret News: Options activity hints U.S. stock market has not reached bottom- Barclays Stock Market Summary: Elliott Wave Count: Wave (ii) or (iv) depending on the stock. Analysis US Stocks: Tesla TSLA, Amazon AMZN, Nvidia (NVDA), Apple AAPL, Microsoft MSFT, Berkshire Hathaway (BRK/B),Block, Inc (SQ), Meta Platforms, Netflix (NFLX), Enphase (ENPH), Alphabet GOOGL. XFL Finance Sector ETF, JPMorgan JPM & Bank of America BAC, Goldman Sachs Group Inc (GS) Stock Market Trading strategies: The market is still trending lower in the medium term. Continue on the short side of the market and short the corrective rally today. We are holding wide stops through wave fours and will exit at Wave 5 of (1) Video Chapters 00:00 NASDAQ 100 03:59 Apple (AAPL) 08:08 NVIDIA (NVDA) 10:31 Amazon (AMZN) 15:18 Meta Platforms (META) 17:22 Netflix (NFLX)  22:09 Enphase (ENPH) 24:26 Tesla (TSLA) 30:27 Alphabet (GOOGL)  32:02 Microsoft (MSFT) 34:10 Berkshire Hathaway (BRK.B) 37:27 Block Inc. (SQ)  39:05 Banks JPM, GS 51:01 End. Thanks for supporting! Analyst Peter Mathers TradingLounge™ Australian Financial Services Licence - AFSL 317817 Source: tradinglounge com    
    • The market debut of German sports car maker Porsche is looking like it will be at the top end of expectations. IGTV’s Jeremy Naylor explains how will impact on Volkswagen. vow    
    • What markets to trade on Wednesday: USD/JPY, AUD/USD, Dax & BOO With economic data key on Wednesday IGTV’s Jeremy Naylor looks at how it would affect the Yen, the Aussie and the Dax. On the corporate agenda Boohoo (BOO) delivers H1 earnings.          
×
×
  • Create New...