Forex Daily News: In this post, we analyse the Canadian Dollar group against their main currencies. As a summary, the second half of the year and 2019, we foresee a corrective movement in the Canadian currency, which could come supported for a correction in oil prices to, then, give way to a new rally. After this correction, our central vision for the Canadian Dollar is a new appreciation scenario.
Additionally, we observe that it is likely that GBP and EUR would show the best performance against the CAD; on the opposite side, the Japanese currency and the Swiss Franc could have the worst performance against the Canadian Dollar.
The USDCAD is developing a complex corrective structure of a second bullish impulsive wave. The corrective structure has a bearish bias, which could find support in the area between 1.29607 to 1.28371. The key level to watch out is 1.2884, this level should convert on a critical pivot level (HHL).
EURCAD cross in the short-term has a bearish bias, probably could see new lows in 1.50 zone. In the mid-term, the cross moves sideways as a complex corrective. In the long-term, we foresee that the EURCAD could find fresh lows in the area between 1.47822 to 1.45662, from where the cross could start a new rally as a fifth bullish wave. Invalidation level is at 1.4442.
Probably the GBPCAD cross shows the clearest movement of the CAD Group. The price is moving in a bearish A-B-C sequence, which could find support at 1.6410 level, from where the price could create a new connector and then initiate a rally. The new bullish sequence has a target the area between 1.8533 and 1.9266. Invalidation level is at 1.5837.
The CADJPY cross has been commented in a previous analysis, and we maintain the main idea which consists in to seek only long positions with a long-term profit target in the area between 94.69 and 95.30. Is probably that the cross makes a retrace to the area between 85.45 to 83.73 from where we could find new opportunities to incorporate us into the trend. Invalidation level is located at 82.17.
In the CADCHF cross, the lemma is “Buy the Dips” or “Watch the Breakout.” CADCHF is running sideways in an upper degree consolidation structure. The key level to control is 0.7636, after the breakout of this level, we expect more upsides to the zone between 0.7992 and 0.8245. In case that the price makes a false breakdown to the area between 0.7394 and 0.7289, it could be an attractive opportunity to look for the long side. Invalidation level is at 0.7124.
In the long-term, NZDCAD is running sideways and making lower highs. The long-term pivot level is at 0.8640. For this cross, we expect only short positions; if the price makes a bullish move, the potential movement is limited to the area between 0.9253 to 0.9461. The long-term target area is between 0.8401 to 0.8098.
Probably the AUDCAD cross is the less attractive to trade. As we can see in the weekly chart, it is running sideways since the second half of 2013. The price is moving inside a bearish cycle, which could find support in the “long-term pivot level” at 0.8919, from where AUDCAD could start to bounce. The invalidation level for the bearish cycle is at 1.0397.
Forex Daily News: Finally, as a technical note, considering that the AUDCAD is mostly bearish, by correlation, the CAD should perform better than the AUD for the period foreseen.