USD/CAD Worth Outlook:Canadian Greenback Forecast: Can USD/CAD Mount a Bullish Continuation?USD/CAD fell to its lowest degree in
USD/CAD Worth Outlook:
Canadian Greenback Forecast: Can USD/CAD Mount a Bullish Continuation?
USD/CAD fell to its lowest degree in 7 months to start out September because the pair continued to provide again a number of the good points it loved within the aftermath of the preliminary covid crash. Extra not too long ago, nevertheless, USD/CAD staged a bullish break increased, surging above a descending trendline that helped to information value decrease since mid-July. Now, crude oil value declines have additional eroded the Canadian Greenback, permitting USD/CAD to progress barely increased nonetheless.
USD/CAD Worth Chart: 4 – Hour Time Body (June 2020 – September 2020)
Suffice it to say, latest value motion may recommend USD/CAD bulls are intent on staging a continuation increased. With the prospect of additional crude weak spot and US Greenback demand on the again of broader danger aversion, it will appear the elemental panorama beneath USD/CAD has shifted barely. Additional nonetheless, the break above the descending trendline from June has opened the door for a continuation increased from a technical standpoint.
Begins in:
Reside now:
Sep 16
( 16:09 GMT )
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Consequently, the medium-term outlook for USD/CAD could also be getting into a transitionary interval. That being mentioned, there are nonetheless arguments to be made for renewed bearishness, specifically the state of danger urge for food available in the market.
Current jitters in fashionable tech shares have despatched US equities retreating, however the uncertainty in a single nook of the market has didn’t translate to a broader decline in danger belongings – other than crude oil which has probably been mirrored in USD/CAD already. Thus, it’s tough to confidently assert a change in development with out additional affirmation.
| Change in | Longs | Shorts | OI |
| Day by day | 34% | -33% | 8% |
| Weekly | 17% | -20% | 5% |
That being mentioned, IG Shopper Sentiment information reveals an awesome variety of retail merchants are net-long USD/CAD, an indication the pair might proceed to fall since we sometimes take a contrarian view to crowd sentiment. Thus, persistence could also be warranted whereas the elemental landscapes continues to evolve. Within the meantime, observe @PeterHanksFX on Twitter for updates and evaluation.
–Written by Peter Hanks, Strategist for DailyFX.com
Contact and observe Peter on Twitter @PeterHanksFX