CANADIAN DOLLAR PRICE OUTLOOK: USD/CAD, CAD/JPY, NZD/CAD Canadian Greenback value motion has been blended to this point this week
CANADIAN DOLLAR PRICE OUTLOOK: USD/CAD, CAD/JPY, NZD/CAD
Canadian Greenback value motion has been blended to this point this week with the Loonie gaining floor towards the Dollar however weakening relative to the Japanese Yen and New Zealand Greenback. USD/CAD has declined roughly 50-pips from final Friday’s shut with CAD/JPY dropping by an analogous magnitude. NZD/CAD continues to climb with spot costs up about 60-pips week-to-date. That mentioned, along with the course of crude oil costs, the Canadian Greenback seems predominantly pushed by efficiency of its FX counterparts.
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USD/CAD PRICE CHART: DAILY TIME FRAME (19 JUN TO 18 NOV 2020)
USD/CAD value motion has edged decrease largely on the again of broad-based US Greenback weak point. The main foreign money pair may be due for a rebound increased, nevertheless, as indicated by the intraday reversal off the 1.3040-price degree. This growth appears to have fashioned a bullish hammer candlestick.
| Change in | Longs | Shorts | OI |
| Every day | -8% | 0% | -5% |
| Weekly | -36% | 84% | -17% |
Reclaiming the 8-day transferring common might open up the door for USD/CAD bulls to set their sights on final week’s swing excessive close to the 1.3170-area. Potential for an upward transfer may warrant extra credence if market sentiment deteriorates, which would doubtless correspond with an uptick in market volatility and selloff in crude oil.
CAD/JPY PRICE CHART: DAILY TIME FRAME (17 JUL TO 18 NOV 2020)
Equally, if dealer threat aversion garners extra traction, which began to indicate throughout Wednesday’s buying and selling session, the Canadian Greenback may slide additional towards the safe-haven Japanese Yen. The approaching MACD crossover suggests CAD/JPY value motion might face additional promoting stress – maybe towards the 78.000-handle. This space of technical assist is highlighted by the positively-sloped trendline prolonged from the 30 July and 29 October swing lows in addition to its backside Bollinger Band.
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NZD/CAD PRICE CHART: DAILY TIME FRAME (18 JUN TO 18 NOV 2020)
NZD/CAD value motion has climbed over 250-pips this month, however as soon as once more, the transfer appears largely owed to New Zealand Greenback energy quite than Canadian Greenback weak point. That mentioned, the relative energy index is operating into ‘overbought’ territory and hints at potential upside exhaustion. A systemic risk-off transfer might catalyze a reversal decrease in NZD/CAD with the 0.8950-price degree eyed as resistance-turned-support.
Maintain Studying – CAD & Oil: Canadian Greenback to Crude Oil Correlation
— Written by Wealthy Dvorak, Analyst for DailyFX.com
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