Categories
Forex Signals

USD/CAD Examines Double Bottom Support – Brace for Bullish Recovery! 

The USD/CAD pair was closed at 1.31273 after placing a high of 1.32036and a low of 1.31042. The USD/CAD fell to its fifth day lowest level on Tuesday amid the broad-based US dollar weakness and the strong rebound in crude oil prices.

The greenback was weak across the board due to the pertaining uncertainty over the US stimulus package’s development. The US Dollar Index dropped to 93.02 level, its lowest since October 9 on Tuesday amid the US equity market’s strength. The improved risk sentiment supported the US equity market and weighed on the US dollar that ultimately dragged the USD/Cad pair’s prices on Tuesday.

The focus of traders has been shifted to the US negotiations for a new round of US stimulus package for the coronavirus crisis. The US Speaker of the House, Nancy Pelosi, has set a deadline for reaching an agreement before the November 3 election.

Though US President Donald Trump has shown his support for the wide range of stimulus measures, still Nancy Pelosi has failed to break the impasse, and these developments have faded away from the hopes that US stimulus will be delivered before elections. These uncertainties kept the market sentiment under pressure, and the USD/CAD pair suffered because of it.

There was no macroeconomic fundamentals to be released from Canada on the data front, and from the US, the Building Permits were released for September that raised to 1.55M from the expected 1.52M and supported the US dollar. While the Housing Starts were declined to 1.42M from the expected 1.45M and weighed on the US dollar that ultimately dragged the USD.CAD pair’s prices.

On the crude oil side, the WTI prices soared on Tuesday after falling for three consecutive days and reached near the $42 level amid the broad-based US dollar weakness. The rising crude oil prices gave strength to commodity-linked Loonie that ultimately added weight on the already declining USD/CAD pair. The Canadian dollar’s strength driven by raised risk sentiment and crude oil prices dragged the USD/CAD pair’s prices towards its five days lowest level on Tuesday.



Daily Technical Levels

Support Resistance

1.3083 1.3186

1.3041 1.3247

1.2980 1.3289

Pivot point 1.3144

The USD/CAD traded sharply bearish at the 1.3103 level, having violated the double bottom support area of the 1.3103 level on the 4-hour timeframe. Below this level, we may see further selling until the 1.3055 mark; however, the MACD and RSI are in an extremely oversold zone, and we may see a slight bullish recovery before entering into an additional selling zone. The idea is to wait for a bullish correction until the 1.3140 level that marks the 38.2% Fibonacci retracement level before taking another selling trade. Good luck! 

Categories
Forex Signals

USD/CAD Gains Support Over 1.3170 – Can Bullish Engulfing Drive Bounce off? 

The USD/CAD was closed at 1.31927 after placing a high of 1.32374 and a low of 1.31770. Overall the movement of the USD/CAD pair remained bearish during the Aisan session today. Most of the selling is seen following the gains in USD/CAD for three consecutive days. The USD/CAD pair posted losses on Friday amid the mixed sentiment around the US stimulus package and Canada’s strong data. On late Thursday, President Trump said that he was raising the size of a fiscal stimulus package to win the support of Democrats to deliver the package to struggling Americans. The republicans were not in favor of big stimulus, and it raised concerns that the stimulus package will not be delivered before elections.

This raised the risk sentiment and pulled back the demand for the safe-haven greenback, and made the USD/CAD pair to post losses on the day. However, the investors remained doubtful about the concerns related to a steep rise in new coronavirus cases in Europe, and this continued to lend some support to the US dollar due to its safe-haven status. The improved US dollar helped cap further losses in the USD/CAD pair.

On the data front, at 17:30 GMT, from the Canada side, the Foreign Securities Purchases for August increased to 15.51B from the expected -3.01B and supported the Canadian Dollar that added pressure on the downward momentum of the currency pair USD/CAD. The Manufacturing Sales data from Canada dropped to -2.0% from the expected -1.4% and weighed on the Canadian Dollar.

The Capacity Utilization Rate was dropped to 71.5% against the anticipated 72.1% and weighed on the US dollar from the US side. The Industrial Production in August also dropped to -0.6% from the forecasted 0.6% and weighed heavily on the US dollar. The US side’s negative economic data added further pressure on the declining USD/CAD pair’s prices.

Meanwhile, the rising fears that another round of lockdowns worldwide to control coronavirus spread could weaken the global energy demand affected crude oil prices. The WTI crude oil dropped on Friday and weighed on commodity-linked Loonie that helped the USD/CAD pair to limit its losses on Friday.

The risk sentiment in the market also kept the USD/CAD pair’s losses limited on Friday after the US pharmaceutical giant Pfizer said that it is expected to file for emergency use authorization for its COVID-19 vaccine in late November. The company said it would move with the vaccine after its safety data are available in late November. The news’s risk sentiment was boosted and kept the USD/CAD pair’s losses under control.


Daily Technical Levels

Support Resistance

1.3175 1.3191

1.3169 1.3201

1.3159 1.3207

Pivot point: 1.3185

The USD/CAD is trading mostly sideways over the 1.3170 level, and recently, it’s trying to a bullish engulfing pattern that may drive upward movement in the market until the 1.3250 level. Conversely, the bearish breakout of 1.3175 level can drive selling bias until 1.3095. Overall, the RSI and MACD are in support of selling bias until the 1.3095 level. Let’s consider taking a buy trade over 1.3170 and selling below the same level today. Good luck!

Categories
Forex Signals

Choppy Trading in USD/CAD – Brace for a Breakout Setup! 

Today in the early European trading session, the USD/CAD currency pair extended its previous session recovery rally and remains bullish around 1.3144 level, mainly due to the broad-based U.S. dollar strength, backed by the risk-off market mood. However, the reason for the prevalent risk-off market sentiment could be associated with the reports suggesting that the U.K. pharma giant, Johnson, and Johnson, stopped its COVID-19 vaccine trial due to an unexplained illness. This, in turn, underpinned the safe-haven U.S. dollar and contributed to the currency pair gains. The on-going uncertainty over the American stimulus package also weighs on the market risk-tone, which gives further support to the U.S. dollar and keeps the currency pair higher. 

Petroleum Institute data becomes the factor that capped further upside momentum in the currency pair. However, the bullish sentiment around the crude oil prices was being supported by optimism over U.S. President Donald Trump’s negative status for the pandemic. Currently, the USD/CAD is trading at 1.3115 and consolidating in the range between 1.3108 – 1.3144.

However, the market trading sentiment failed to extend its previous day bullish moves and remained depressed by combining factors. Be it the worrisome headlines concerning the Brexit or the tension between the US-China, not to forget the coronavirus woes in the U.S. and Europe, the market trading sentiment has been flashing red since the day started, which ultimately keeps the safe-haven assets supportive on the day. 

As per the latest report, the U.K. pharma giant, Johnson and Johnson, delayed its COVID-19 vaccine trial due to an unexplained illness. Moreover, China’s dislike of the White House arms sale to Taiwan and the recent ban from Beijing to use Aussie coal for power stations adds additional pressure around the market sentiment.

This, in turn, the broad-based U.S. dollar succeeded in gaining positive traction on the day. However, the U.S. dollar gains seem rather unaffected by the political uncertainty in the U.S. ahead of U.S. elections. Thus, the gains in the U.S. dollar become the key factor that kept the currency pair higher. Whereas, the U.S. Dollar Index, which tracks the greenback against a bucket of other currencies, rose by 0.11% to 93.207 by 10:04 PM ET (2:04 AM GMT). However, the bullish sentiment around the crude oil prices could be associated with the positive reports suggesting that the U.S. President Donald Trump’s negative status for the virus infection. 


Daily Support and Resistance

S1 1.3233

S2 1.3272

S3 1.3292

Pivot Point 1.3312

R1 1.3331

R2 1.3351

R3 1.339

The USD/CAD pair is trading sideways within a narrow trading range of 1.3145 – 1.3103 level, which marks double bottom and double top level on the 2-hour timeframe. A bullish breakout of 1.3145 level may lead the USD/CAD price towards the next resistance area of 1.3207 mark, while on the lower side, the support is likely to be found around 1.3040 level today. 

Entry Price – Buy 1.31421

Stop Loss – 1.31021

Take Profit – 1.31821

Risk to Reward – 1:1

Profit & Loss Per Standard Lot = -$400/ +$400

Profit & Loss Per Micro Lot = -$40/ +$40

Fellas, now you can check out forex trading signals via Forex Academy mobile app. Follow the links below.

iPhone Users: https://apps.apple.com/es/app/fasignals/id1521281368

Andriod Users: https://play.google.com/store/apps/details?id=academy.forex.thesignal&hl=en_US

Categories
Forex Signals

USD/CAD Failed To Stop Its Previous Session Losing Streak – What’s Next?

During Friday’s Early European trading session, the USD/CAD currency pair extended its previous session losses and dropped to the intra-day low below 1.3180 level, mainly due to the broad-based U.S. dollar weakness. The prevalent downtrend in the greenback is primarily tied to the optimism over the U.S. fiscal stimulus hopes, which keeps the market trading sentiment positive and contributed to the currency pair losses. Moreover, the U.S.’s political uncertainty also weighs on the already weaker U.S. dollar, which adds further burden around the currency pair. 

Across the pond, the reason for the declines in the currency pair could also be attributed to the recent surge in the crude oil prices, which underpinned the commodity-linked currency the Loonie and contributed to the currency pair’s declines. The crude oil prices were being supported by the Norwegian oil output disruption and risk-on market profile. As of writing, the USD/CAD currency pair is currently trading at 1.3175 and consolidating in the range between 1.3168 – 1.3204. Moving on, the currency pair traders seem cautious to place any strong position ahead of Canadian jobs data.

Despite the intensified Sino-US tussle, the market trading sentiment extended its previous-session positive tone and remained supportive by the combination of factors. The reason for the risk-on market trading sentiment could be attributed to the positive headlines suggesting that the Republican and Democratic policymakers agreed on a final push to reach a comprehensive aid package after President Donald Trump rejected talks earlier this week. However, these positive headlines helped the market’s risk sentiment and undermined the U.S. dollar’s safe-haven demand.

At the USD front, the broad-based U.S. dollar remained depressed as the investors continue to sell U.S. dollars on the back of the U.S. fiscal stimulus hopes, which keeps the market sentiment bullish. Moreover, the U.S. dollar losses could also be associated with political uncertainty in the U.S. ahead of U.S. elections. Thus, the losses in the U.S. dollar kept the currency pair lower. 

Crude oil fresh bids above $42 on the day backed by reports cited the Norwegian oil output disruption and risk-on market profile. In the meantime, the U.S. Secretary of State Mike Pompeo tweeted the Trump administration’s decision to increase hardships for Iran’s financial sector while imposing fresh sanctions on 18 banks from Iran, further fueling the disturbance in the oil supply and provided an additional boost to the oil prices. 

Moving on, the currency pair could face further losses as Canada is set to add 156.6K jobs in September. Hence, the big beat on the Canadian jobs data tends to underpin the Candian dollar, which could offer extra legs to the downside in the currency pair. Looking ahead, the market traders will keep their eyes on updates surrounding the Sino-US tussle and stimulus headlines. Whereas Canadian jobs data will be key to watch. In the meantime, the USD moves and coronavirus headlines will not lose its importance.


Daily Support and Resistance

S1 1.3233

S2 1.3272

S3 1.3292

Pivot Point 1.3312

R1 1.3331

R2 1.3351

R3 1.339

The USD/CAD is heading lower with a bearish bias at the 1.3170 level, having violated the support level of 1.3206 which now is working as a resistance. On the lower side, the USD/CAD pair may find support at 1.3174 area and 1.3080 support. We may enter a sell trade below 1.3209 level today or at least put the sell limit. Stay tuned and good luck! 

Categories
Forex Signals

USD/CAD Breaking Below Double Bottom Support – Quick Outlook! 

The USD/CAD pair was closed at 1.32564 after placing a highof1.33404 and a low of 1.32548. The USD/CAD pair dropped and removed all of its previous day’s gains on Wednesday amid broad-based U.S. dollar weakness and increasing crude oil prices. The U.S. dollar weakness was due to Trump’s latest U-turn on Wednesday’s previous day’s statement. The U.S. President Donald Trump backed his statement of halting the negotiations with Democrats because of continuous disagreement between both parties over the stimulus measure’s size. However, a day after that, Trump again called for more aid to Americans from U.S. congress as airlines and other small businesses were facing huge crises. 

This U-turn by Trump raised risk sentiment in the market and supported the riskier Canadian Dollar that ultimately dragged the USD/CAD pair on Wednesday. The hopes for further stimulus dimmed on Tuesday after Trump’s advice to Republicans to stop negotiating with Democrats. These declined hopes added strength to the U.S. dollar on the previous day, but the strength was turned into weakness after Trump backed from his own statement on Wednesday.

The weak U.S. dollar added further pressure on the USD/CAD pair, and the pair posted big declines on Wednesday. Furthermore, the rising Crude oil prices also affected the USD/CAD pair movements on Wednesday. The WTI Crude oil rose on Wednesday despite the negative Crude Oil Inventories report from the United States.

At 19:30 GMT, the Crude Oil Inventories data from Energy Information Administration revealed that U.S. crude oil inventories for the previous week came in as 0.5M against -1.2M. The crude oil prices remained above $40 on Wednesday and added strength in commodity-linked currency Loonie. The rising crude oil prices raised the Canadian Dollar, which added pressure on the USD/CAD pair. Meanwhile, the Ivey Purchasing manager’s Index for September was released from Canada that dropped to 54.3 points against the forecasted 64.5 and weighed on the Canadian Dollar. It kept the losses in the USD/CAD pair limited on Wednesday.

Federal Reserve also released its September meeting minutes on Wednesday that revealed that officials were concerned about economic recovery and called for more stimulus measures to support the economic recovery. Minutes from Fed failed to give any specific direction to the USD/CAD pair on Wednesday, and the pair kept moving in a bearish trend.


Daily Technical Levels

Support Resistance

1.3222 1.3312

1.3192 1.3372

1.3132 1.3402

Pivot point: 1.3282

The USD/CAD is heading lower with a bearish bias at 1.3245 level, having violated the double bottom support level of 1.3250. The closing of the bearish engulfing pattern on the 4-hour timeframe triggered a bearish breakout, which is now likely to open further room for selling until 1.3202 levels. Checkout a trading plan below…

Entry Price – Sell 1.32344

Stop Loss – 1.32744

Take Profit – 1.31944

Risk to Reward – 1:1

Profit & Loss Per Standard Lot = -$400/ +$400

Profit & Loss Per Micro Lot = -$40/ +$40

Fellas, now you can check out forex trading signals via Forex Academy mobile app. Follow the links below.

iPhone Users: https://apps.apple.com/es/app/fasignals/id1521281368

Andriod Users: https://play.google.com/store/apps/details?id=academy.forex.thesignal&hl=en_US

Categories
Forex Signals

USD/CAD Resistance Become Support Level – Brace for Bullish Signal

During Tuesday’s Asian trading session, the USD/CAD currency pair managed to stop its previous session losses and refreshed daily highs, around the 1.3270 level due to the mixed sentiment around the crude oil prices, which tend to undermine the commodity-linked currency the Loonie and helps the currency pair to put the fresh bids during the early European session.

On the contrary, the broad-based U.S. dollar weakness, triggered by the combination of factors, could be considered as one of the key factors that kept the lid on any additional gains in the currency pair. As of writing, the USD/CAD currency pair is currently trading at 1.3269 and consolidating in the range between 1.3241 – 1.3274.

Despite the fears of fresh lockdown restrictions in the U.K. and Europe, the equity market sentiment remained well supported by optimism over the U.S. President Donald Trump’s recovery from COVID-19. As per the latest report, the U.S. President Donald Trump returned to the White House after a 3-night hospital stay due to coronavirus infection, which boosted the market risk tone and undermined the safe-haven U.S. dollar.

Apart from this, the possibilities of a soft Brexit remain high, which keeps investors relax. In the meantime, the U.S. House Speaker Nancy Pelosi and the Treasury Secretary Steve Mnuchin keep struggling even to start the stimulus talks, which add further boost around the market trading sentiment.

As a result, the broad-based U.S. dollar remained depressed as the investors continue to sell U.S. dollars in the wake of the market’s low safe-haven demand. Moreover, the U.S. dollar losses could also be associated with the rising hopes that the U.S. Congress will reach an agreement over the latest stimulus measures to control the economic impact of COVID-19. Thus, the U.S. dollar losses become the key factor that cap further gains in the currency pair. Whereas, the U.S. Dollar Index, which tracks the greenback against a bucket of other currencies, dropped by 0.03% to 93.468 by 9:52 PM ET (1:52 AM GMT).

At the crude oil front, WTI crude oil prices still reporting mixed signals. However, the crude oil prices took some bids during the early day, supported by the marker risk-on mood and weaker U.S. dollar. Besides, the crude oil prices’ gains were further supported by the reports that show growing workers’ strike in Norway that could reduce the country’s production capacity. Thus, the crude oil prices’ upticks underpinned the commodity-linked currency, the Loonie, and exerted some downside pressure on the currency pair.

Looking forward, the market traders keeping their eyes on the Fed Chair Jerome Powell’s scheduled speech. In the meantime, the updates surrounding the fresh Sino-US tussle, as well as the coronavirus (COVID-19), could not lose their importance.


Daily Support and Resistance

S1 1.3233
S2 1.3272
S3 1.3292
Pivot Point 1.3312
R1 1.3331
R2 1.3351
R3 1.339

The USD/CAD has closed a Doji candle over a resistance become support level of 1.3245, which signifies weakness in the selling bias. At the same time, the USD/CAD’s MACD is forming smaller histograms than before, and it’s an indication of a potential bullish bais. The USD/CAD may find the next resistance at 1.3305 and 1.3330 level while the support is likely to stay at 1.3245 and 1.3205.

Entry Price – Buy 1.32651
Stop Loss – 1.32251
Take Profit – 1.33051
Risk to Reward – 1:1
Profit & Loss Per Standard Lot = -$400/ +$400
Profit & Loss Per Micro Lot = -$40/ +$40
Fellas, now you can check out forex trading signals via Forex Academy mobile app. Follow the links below.
iPhone Users: https://apps.apple.com/es/app/fasignals/id1521281368
Andriod Users: https://play.google.com/store/apps/details?id=academy.forex.thesignal&hl=en_US

Categories
Forex Signals

USD/CAD Succeeded to Stop Bearish Streak – Quick Update on Signal! 

Today in the Asian trading session, the USD/CAD currency pair managed to stop its previous day bearish rally and edged higher around well above the 1.3300 level on the day. However, the bullish sentiment around the currency pair was being supported by the combination of factors, and as the broad-based U.S. dollar is back in demand on the day in reaction to a confusing end of the U.S. presidential debate, as well as the U.S. dollar gained further support after the release of upbeat U.S. macro data, which kept the currency pair higher. 

Besides, the market prevalent risk-off sentiment, triggered by the latest headlines surrounding U.S. President Donald Trump’s infection of the coronavirus (COVID-19), provided a further boost to the U.S. dollar as its safe-haven status. Across the pond, the reason for the USD/CAD pair’s bullish bias could also be linked to the soft WTI crude oil prices, which undermined the demand for the loonie and contributed to the currency pair gains. 

The stock market had been flashing red since the day session started and going toward ending the day with losses. Nevertheless, the reason could be associated with the U.S. policymakers’ failures to break the deadlock over the COVID-19 stimulus talks. Meanwhile. The rumors are surrounding U.S. President Donald Trump’s infection of the coronavirus (COVID-19), also weighing on the market trading tone, which tends to underpin the safe-haven assets like the U.S. dollar.

The long-lasting fight between the United States and China remain on the play as the South China Morning Post (SCMP) cites the U.S. preference for Taiwan over Beijing, which keeps fueling the relations between the United States and China. In the meantime, the market risk-off tone was further bolstered by the Financial Times (F.T.) headline, suggesting deployment of forces in Hong Kong to tame the democracy protests. This, in turn, added further pessimism around the market trading sentiment and underpinned the safe-haven assets.

The crude oil prices failed to extend its previous session winning streak and remained depressed around $38.00 marks across the pond. Nevertheless, the idea for the bearish bias around the crude oil prices could be attributed to the prevalent worries over the economic recovery after the coronavirus (COVID-19) resurgence in the U.S., Europe, and the U.K. Besides, the rise in OPEC output last month also weighed on crude oil prices. Apart from this, the currency pair’s bullish sentiment was further bolstered by the downbeat monthly Canadian GDP report, which eventually undermined the Candian dollar and extended further support to the currency pair. At the data front, the economy recorded a 3% growth in July, lower than the previous month’s 6.5% rise.

Looking forward, the traders will keep their eyes on the continuous drama surrounding the U.S. elections and updates about the U.S. stimulus package. Meanwhile, the U.S. employment data for September will be key to watch on the day.


Daily Support and Resistance

S1 1.3222

S2 1.3301

S3 1.3344

Pivot Point 1.3381

R1 1.3423

R2 1.3461

R3 1.354

Technically, the USD/CAD is supported around 1.3283 levels extended by a double bottom support level. On the higher side, the USD/CAD may face resistance at 1.3342 level. The USD/CAD two-hour timeframe shows a bullish signal, especially after closing the bullish engulfing candle over 1.3283 support zones. Checkout a trading plan below…

Entry Price – Buy 1.33255

Stop Loss – 1.32855

Take Profit – 1.33655

Risk to Reward – 1:1

Profit & Loss Per Standard Lot = -$400/ +$400

Profit & Loss Per Micro Lot = -$40/ +$40

Fellas, now you can check out forex trading signals via Forex Academy mobile app. Follow the links below.

iPhone Users: https://apps.apple.com/es/app/fasignals/id1521281368

Andriod Users: https://play.google.com/store/apps/details?id=academy.forex.thesignal&hl=en_US

Categories
Forex Signals

USD/CAD Selling Bias Weakens – Who’s Up for a Bullish Trade?

During Thursday’s European trading session, the USD/CAD currency pair extended its early-day losses and remain depressed below 1.3300 level despite the broad-based US dollar fresh strength. However, the US dollar took some fresh bids in the wake of upbeat US ADP numbers. Hence, the US dollar fresh strength could be considered as one of the key factors that help the currency pair to limit its deeper losses.

On the contrary, the reason for the sharp declines in the currency pair could be attributed to the gains in the crude oil prices which underpinned the commodity-linked currency the Loonie, and contributed to the currency pair’s declines.

Despite the US-China tussle, fears of the coronavirus (COVID-19), and political uncertainty, the global market risk sentiment remained well supported by optimism over a possible coronavirus vaccine. Besides this, the US policymakers inched closer to the much-awaited aid package despite Wednesday’s failed negotiations, which also used a positive impact on the trading sentiment and made the US dollar unable to put any safe-haven bids.

At the USD front, the broad-based US dollar tried very hard to stop its previous session bearish bias, but the losses remain on the cards the remained depressed as the investors continue to sell US dollars on the back of risk-on market sentiment. However, the upbeat US ADP data helped the US dollar to stop its deeper losses, which becomes the key factor that put the lid on any additional losses in the currency pair.

At the crude oil front, WTI crude oil prices took bids above $40, mainly after the surprise draw in the official oil inventories, shown by the Energy Information Administration (EIA). Apart from this, the broad-based US dollar weakness, as well as hopes of American stimulus, also helped the crude oil prices to extend its overnight gains. Hence, the upticks in the crude oil prices underpinned the commodity-linked currency the Loonie and exerted some downside pressure on the currency pair.

Looking ahead, the market traders will keep their focus on the key US ISM Manufacturing PMI for September, and the weekly Jobless Claims data. Across the pond, Australia’s AiG Performance Mfg Index and Commonwealth Bank Manufacturing PMI will also be key to watch. Whereas, the headlines concerning Brexit, pandemic, and the US Presidential Election will not lose their importance.


Daily Support and Resistance

S1 1.3187

S2 1.3249

S3 1.3276

Pivot Point 1.3311

R1 1.3339

R2 1.3373

R3 1.3435

The technical side of the USD/CAD seems bearish as the pair is trading at 1.3287 level, holding right above the double bottom level of 1.3282. On the 2 hour timeframe, the violation of the 1.3282 level, we may see find selling until the 1.3236 level today, and that’s a level which can help us capture a bullish bias around 1.3236. The MACD is supporting bearish bias, but the recent histograms are becoming smaller and smaller, indicating a weakening selling trends. Therefore, we have placed a buy limit of around 1.3252. Check out a full trade plan below…

Entry Price – Buy Limit 1.32523

Stop Loss – 1.32123

Take Profit – 1.32923

Risk to Reward – 1:1

Profit & Loss Per Standard Lot = -$400/ +$400

Profit & Loss Per Micro Lot = -$40/ +$40

Fellas, now you can check out forex trading signals via Forex Academy mobile app. Follow the links below.

iPhone Users: https://apps.apple.com/es/app/fasignals/id1521281368

Andriod Users: https://play.google.com/store/apps/details?id=academy.forex.thesignal&hl=en_US

Categories
Forex Signals

USD/CAD Triple Top Pattern Pressing Pair Lower – Sell Limit!

The USD/CAD pair was closed at 1.33921 after a high of 1.34178 and a low of 1.33322. Overall the movement of the USD/CAD pair remained bullish throughout the day. The currency pair USD/CAD posted gains on Friday amid the US dollar’s broad-based strength and the declining crude oil prices. The USD/CAD pair posted the biggest weekly gain on Friday since March as the US dollar gained its safe-haven status back.

The US Dollar Index that measures the value of the US dollar against the six currencies’ basket rose above 96.6 level on Friday and reached its 2-months highest level. The rise in the greenback gave a push to the USD/CAD pair on Friday. The US dollar was strong across the board as the market’s rising level of uncertainties called for a safe-haven appeal. The delayed US stimulus package, the rising number of coronavirus figures from Europe, and the escalating US-China tensions kept the uncertainty level high.

There were also increased concerns about economic recovery due to depressing macroeconomic data releases from many countries. On Friday, the Core Durable Orders declined to 0.4% in August from the projection of 1.0%, and the Durable Goods Orders also dropped to 0.4% against the forecast of 1.1% in August. These negative economic figures raised the economic recovery fears and supported the safe-haven appeal.

The fears for the next round of US stimulus package’s late delivery increased in the market as there was no progress in talks. Chances have been increased that no new stimulus measure will be announced before the US Presidential elections on 3rd November. 

Meanwhile, the European countries were experiencing the latest round of coronavirus pandemic as France & UK, with some other member states, faced the highest rise in daily infected cases. In 24 hours, France reported more than 16000 cases, while the UK reported more than 6600 cases. Both countries saw the highest level of reported cases in a single day since the pandemic started.

Furthermore, the rising conflict between the world’s two largest economies over the coronavirus pandemic and its origin at the United Nations General Assembly (UNGA) raised fears for a new Cold-war.

The above-mentioned fears and concerns kept the market risk sentiment under pressure and demand for safe-haven appeal at high that supported the US dollar and, ultimately, the USD/CAD pair on Friday.


Moreover, the declining crude oil prices on Friday weighed on commodity-linked Loonie when prices of WTI Crude oil futures dropped below $41 per barrel. The decreased crude oil prices could be attributed to the rising safe-haven appeal and US dollar prices as the greenback and crude oil prices negatively correlate. The declining Canadian dollar supported the USD/CAD pair’s an upward trend on Friday and helped the pair to post the most significant weekly gains since March. There was no economic data to be released from Canada, and hence, the team followed the USD movements only.

Daily Technical Levels

Support Resistance

1.3371 1.3394

1.3360 1.3406

1.3348 1.3417

Pivot point: 1.3383

Technically, the USD/CAD pair has disrupted the strong resistance mark of 1.3345, and on the higher side, the aim for USD/CAD is expected to stay at 1.3394. The 50 EMA and the MACD are underpinning the upward movement in the market; therefore, we have opened a buy trade in the USD/CAD pair. Let’s follow the below trade plan… 

1.34453 1.33653

Entry Price – Sell Limit 1.34053

Stop Loss – 1.33057 

Take Profit – 1.33857

Risk to Reward – 1:1

Profit & Loss Per Standard Lot = -$400/ +$400

Profit & Loss Per Micro Lot = -$40/ +$40

Fellas, now you can check out forex trading signals via Forex Academy mobile app. Follow the links below.

iPhone Users: https://apps.apple.com/es/app/fasignals/id1521281368

Andriod Users: https://play.google.com/store/apps/details?id=academy.forex.thesignal&hl=en_US

Categories
Forex Signals

Bullish Bias in USD/CAD Dominates Amid Stronger Dollar – Signal Update!  

The USD/CAD pair extended its upward momentum to its highest level since 12th August, however, in the late trading session, the pair reversed its direction and closed its day with losses. The pair’s upward trend could be attributed to the strong rebound of the US dollar across the board due to more hawkish comments from the Federal Reserve officials and US Secretary Steven Mnuchin. In their testimony to Congress, the Federal Reserve Chairman Jerome Powell and US Treasury Secretary Steven Mnuchin gave their views about the economic condition and strategies.

Powell reiterated that the economic indicators were showing improvement in the market but still, there was a lot dependent on the coronavirus pandemic. He also said that country had left behind the depressed days where economic activities were shut down due to the coronavirus pandemic, but there is still much left to be done.

Whereas, Mnuchin stressed the need for the next round of stimulus measures and urged Congress to announce it soon. Another Fed official Charles Evans said that Fed’s interest rates could be raised before the 2% inflation target is met, and this raised the bars for the US dollar across the board. The US Dollar Index rose above 94 levels and pushed the USD/CAD pair above 1.334 level on Tuesday, highest since mid-August. 

However, the USD/CAD pair’s gains could not live for long and started to decline in the second half of the day despite the declining crude oil prices. The Canadian Dollar came under pressure when the crude oil prices dropped to $39 level on Tuesday amid the rising tensions between the US & China and coronavirus’s global resurgence.

The fears that rising coronavirus cases worldwide could force renewed lockdown measures globally as the European countries were re-imposing restrictive measures to curb the spread of coronavirus weighed on Crude oil prices on Tuesday. Meanwhile, the rising tensions between the US & China over the South China Sea after the US called for help from Europe and other allies against China’s claim to lands in the South China Sea, also exerted pressure on Crude oil prices. The declining crude oil prices weighed on the Canadian Dollar, and the USD/CAD prices reached its highest since 12th August. 


Technically, the USD/CAD pair has violated the strong resistance level of 1.3345, and on the higher side, the target for USD/CAD is likely to stay at 1.3394. The 50 EMA and the MACD are supporting the upward movement in the market; therefore, we have opened a buy trade in the USD/CAD pair. Let’s follow the below trade plan… 

Entry Price – Buy 1.33457

Stop Loss – 1.33057

Take Profit – 1.33857

Risk to Reward – 1:1

Profit & Loss Per Standard Lot = -$400/ +$400

Profit & Loss Per Micro Lot = -$40/ +$40

Fellas, now you can check out forex trading signals via Forex Academy mobile app. Follow the links below.

iPhone Users: https://apps.apple.com/es/app/fasignals/id1521281368

Andriod Users: https://play.google.com/store/apps/details?id=academy.forex.thesignal&hl=en_US

Categories
Forex Signals

USD/CAD Extend Previous Session Bullish Bias – Brace to Capture Quick Buy!

Today in the European trading session, the USD/CAD currency pair successfully extended its previous session winning streak and consolidated the previous day’s strong positive move to a 6-week high. However, the pair’s positive tone could be associated with the broad-based US dollar on-going strength, backed by the risk-off market tone.

The reason for the USD/CAD pair bullish bias could also be attributed to the steep fall in crude oil prices, which tend to weaken the demand for the commodity-linked currency the loonie, and contributed to the currency pair gains. Currently, the USD/CAD currency pair is currently trading at 1.3314 and consolidating in the range between 1.3296 – 1.3346. Moving on, the traders seem cautious to place any strong position amid expectations that the Fed Chair Jerome Powell will reaffirm to keep interest rates lower for longer during his congressional testimony later on the day.

Intensifying probabilities of fresh lockdown measures to control the 2nd-wave of coronavirus outbreak pushed global equity markets down. This, in turn, boosted the US dollar’s status as the reserve currency. The latest headlines suggest that the US Secretary of State Mike Pompeo took help from France, Germany, and the UK to reject China’s South China Sea claims at the United Nations (UN).

The broad-based US dollar has resumed its gaining streak at the USD front since the European session started and was being supported by some heavy selling pressure around the equity market. Meanwhile, the concerns about rising US-China tensions also increased the safe-haven demand in the market, which also helps the US dollar as it safe-aven status.

The crude oil prices failed to stop its previous session across the ocean, losing streak and taking rounds below the $40.00 mark. Nevertheless, the bearish bias around the crude oil prices could be attributed to the renewed worries over the economic recovery after the coronavirus (COVID-19) resurgence in Europe and the United Kingdom.


Besides, the possibilities of Libya resuming oil exports added further bearish pressures around the crude oil prices. Thus, the declines in oil prices undermined demand for the commodity-linked currency the loonie and contributed to the currency pair gains.

Entry Price – Buy 1.32706
Stop Loss – 1.32306
Take Profit – 1.33106
Risk to Reward – 1:1
Profit & Loss Per Standard Lot = -$400/ +$400
Profit & Loss Per Micro Lot = -$40/ +$40
Fellas, now you can check out forex trading signals via Forex Academy mobile app. Follow the links below.
iPhone Users: https://apps.apple.com/es/app/fasignals/id1521281368
Andriod Users: https://play.google.com/store/apps/details?id=academy.forex.thesignal&hl=en_US

Categories
Forex Signals

USD/CAD Bounces off to test Resistance Level – Brace for Buy Signal! 

The USD/CAD currency pair failed to stop its previous session declining rally and took some further offers while refreshing 3-day lows, around the 1.3135 regions in the last hour. However, the sentiment around the currency pair was being pressured by the US dollar’s selling tone. Hence, the broad-based US dollar weakness could be associated with the renewed optimism over a possible vaccine for the highly infectious coronavirus disease, which eventually forced investors to continue dumping the safe-haven greenback. 

Apart from this, the doubts over the US fiscal stimulus measures and upbeat China data also weighed on the broad-based US dollar. On the contrary, the subdued/range-bound trading moves around the crude oil prices could be considered one of the key factors that kept the lid on any additional currency pair losses. At the time of writing, the USD/CAD currency pair is currently trading at 1.3162 and consolidating in the range between 1.3132 – 1.3187.

The global market trading sentiment got a strong boost after AstraZeneca resumed phase-3 clinical trials of its COVID-19 vaccine candidate. As per the latest report, the Chinese CDC chief biosafety expert recently confirmed that the Ordinary Chinese could take the COVID19 vaccine as early as November or December as the phase III clinical trial went very smoothly. Besides, Pfizer and BioNTech also boosted vaccine hopes while saying that they are also looking to expand their candidates’ trials. 

Furthermore, the risk-on market sentiment was further bolstered after the release of stronger-than-expected Chinese industrial production data, which strengthened the hopes that the world’s second-largest economy is returning to normal and weighed over the US dollar. At the data front, China’s August Retail Sales YoY, the number came at 0.5%. 0% exp and -1.1% last, with Industrial Output YoY at +5.6% and +5.1% exp and +4.8% last. In the meantime, the Fixed Asset Investment YoY unchanged at -0.3% vs. -0.4% expected and -1.6% last. At the same time, China’s January-August Private Sector Fixed Asst Investment dropped by 2.8% YoY.  

As a result, the broad-based US dollar failed to gain any positive traction and remained bearish. Moreover, the US dollar losses could also be attributed to the doubts over the US fiscal stimulus measures. The chances for a comprehensive stimulus seem weakened after Democratic voted to block a Republican bill that would have provided around $300 billion in new coronavirus aid. However, the losses in the US dollar kept the USD/CAD currency pair under pressure. Whereas, the US dollar index dropped to 93.029, slipping further from a one-month high of 93.664 touched last Wednesday, with its low last week of 92.695 seen as immediate support.

However, the market trading sentiment was rather unaffected by the rising global COVID-19 cases, fears of no-deal Brexit, and the Sino-American tussle. At the US-China front, Sino-US’s tensions picked up further pace after the US blocks Chinese goods made with forced labor. As per the latest report, the Trump administration has banned importing certain apparel and computer parts from China, while saying forced Muslim laborers make them from the Xinjiang region.

On the contrary, the crude oil prices failed to maintain its early-day small gains and started to flash red during the European session around 37.18. However, the reason for the bearish bias around the crude oil prices could be attributed to the fears of the oversupply and lower demand. Moreover, Libya’s news is restoring its exports also added extra burden around the crude oil prices. Thus, the decline in oil prices undermined the demand for the commodity-linked currency, the loonie, and the key factor that cap further downside momentum for the currency pair. 


The USD/CAD pair is trading sharply bullish at 1.3237 level, having formed a series of bullish engulfing candles on the hourly timeframe. On the higher side, the pair may soar further until 1.3243 level. The MACD and RSI suggest a bullish bias, while the 50 periods EMA also suggests a bullish trend. Let’s follow a trading plan below.  

Entry Price – Buy 1.31816

Stop Loss – 1.31416

Take Profit – 1.32216

Risk to Reward – 1:1

Profit & Loss Per Standard Lot = -$400/ +$400

Profit & Loss Per Micro Lot = -$40/ +$40

Fellas, now you can check out forex trading signals via Forex Academy mobile app. Follow the links below.

iPhone Users: https://apps.apple.com/es/app/fasignals/id1521281368

Andriod Users: https://play.google.com/store/apps/details?id=academy.forex.thesignal&hl=en_US

Categories
Forex Signals

USD/CAD Failed To Maintain Its Previous Day Bullish – Let’s Capture Sell! 

During Wednesday’s European trading session, the USD/CAD currency pair failed to extend its previous session bullish bias. They dropped from the 1.3257, the August 17 high to 1.3215 level mainly due to the cautious mood of the traders ahead of the Bank of Canada’s (BOC) monetary policy meeting, which is due to happen at 14:00 GMT. 

On the contrary, the broad-based U.S. dollar bullish bias, strengthened by the market risk-off sentiment, turned out to be a top factor that caps further downside momentum for the currency pair. Across the ocean, the reason for the currency pair declining rally could be associated with the fresh upticks in the crude oil prices, which tend to underpin the commodity-linked currency the loonie, and becomes the key factors that kept the currency pair under pressure. At the moment, the USD/CAD currency pair is currently trading at 1.3224 and consolidating in the range between 1.3215 – 1.3260.

The long-lasting disappointment bolstered the risk-off market sentiment over the lack of progress in the much-awaited fiscal package. The U.S. Democratic Party leaders still have differences in package figures. Apart from this, the intensifying US-Chia tussle also kept the market trading sentiment under pressure. President US Trump recently gave the warning while hinting further punitive measures over the Chinese diplomats. He further added that we would take a tough stand against the Dragon Nation” if Trump is re-elected. However, the cautious mood around the equity markets underpinned the safe-haven U.S. dollar. 

At the crude oil front, the crude oil prices have started to gains some positive traction during the European session mainly backed by the record supply cuts by the Organization of the Petroleum Exporting Countries and allies, known as OPEC+. 

Looking forward, the market traders will keep their eyes on the Bank of Canada’s (BOC) monetary policy meeting, which is due to be released at 14:00 GMT. The risk catalyst like geopolitics and the virus woes, not to forget the Brexit, will also be key to watch for the fresh direction.


The USD/CAD has enrolled the overbought region at 1.3225 mark and has formed candles like Doji and Spinning top beneath the solid resistance mark of 1.3262 level. It appears like traders are getting ready to trade the Bank of Canada monetary policy outcome. Here’s a trade plan for today. 

Entry Price – Sell 1.32219

Stop Loss – 1.32619

Take Profit – 1.31819

Risk to Reward – 1:1

Profit & Loss Per Standard Lot = -$400/ +$400

Profit & Loss Per Micro Lot = -$40/ +$40

Fellas, now you can check out forex trading signals via Forex Academy mobile app. Follow the links below.

iPhone Users: https://apps.apple.com/es/app/fasignals/id1521281368

Andriod Users: https://play.google.com/store/apps/details?id=academy.forex.thesignal&hl=en_US

Categories
Forex Signals

USD/CAD Remains On Bullish Track – Quick Buy Trade!

The USD/CAD succeeded in extending its previous day winning streak and still taking bids around well above the 1.3100 level. However, the positive tone around the currency pair could be associated with the broad-based U.S. dollar on-going strength, backed by the Friday released upbeat U.S. jobless rate data and hopes of the U.S. stimulus. The U.S. dollar gains were also supported by the high safe-haven demand in the market.

On the other side of the ocean, the reason for the currency pair bullish bias could also be attributed to the weaker crude oil prices, which tend to undermine the demand for the commodity-linked currency, the loonie, and contributed to the currency pair gains. Currently, the USD/CAD currency pair is currently trading at 1.3117 and consolidating in the range between 1.3084 – 1.3120.

Despite the hopes of the U.S. stimulus package and coronavirus vaccine, the market trading sentiment represents mixed signals as the confused performance of Asia-Pacific stocks and declines of the U.S. 10-year Treasury yields 0.70%, tend to highlight the risk-off mood. This, in turn, underpinned the U.S. dollar and extended some support to the currency pair.

However, the reason behind the risk-off market sentiment could be attributed to the intensified US-China tussle. Both nations are using very harsh words against each other. The latest headlines suggest that the U.S. is considering banning some or all products made with cotton from China’s Xinjiang province. This happened after Beijing’s visa restrictions over the American reporters. The gloomy headlines concerning the Brexit also weighed on the market trading sentiment, which eventually increased the market’s safe-haven demand.

At the data front, the headline Non-farm payrolls data for August missed expectations with +1371K. However, the unemployment rate dropped to 8.4%.vs 9.8% expected. In the meantime, the Average Hourly Earnings exceeded predictions, with +0.4% MoM in August vs. 0% expected.

At the USD front, the broad-based U.S. dollar has resumed its gaining streak since the beginning of this week and is supported by some heavy selling pressure around the European currencies. The concerns about rising US-China tensions increased the safe-haven demand in the market, which also helps the U.S. dollar as it safe-aven status. Thus, the gains in the U.S. dollar kept the currency pair higher. Whereas, the U.S. Dollar Index, which tracks the greenback against a basket of other currencies, rose by 0.13% to 93.168 by 9:53 PM ET (2:53 AM GMT).

The crude oil prices failed to stop its previous da losing streak and dropped further below the 39.00 marks. However, the reason for the bearish bias around the crude oil prices could be attributed to the renewed worries over the economic recovery after the U.S. reported fresh COVID-19 cases. Also weighing on the oil prices could be the reports that suggested the end of the peak driving season in the U.S. Thus, the declines in oil prices undermined demand for the commodity-linked currency the loonie and contributed to the currency pair gains.

Despite the combination of supporting factors, the buyers seemed to struggle to push the USD/CAD currency pair beyond a two-month-old descending trend channel. However, the traders avoided placing any strong bids ahead of the latest BoC monetary policy decision on Wednesday. The risk catalyst like geopolitics and the virus woes will be key to watch for the fresh direction, not to forget the Brexit.


The USD/CAD is trading with a bullish bias at 1.3156, having violated the resistance level of 1.3113. Recently, the closing of the bullish engulfing candle on the 2-hour timeframe is suggesting bullish bias; therefore, we have opened a buying trade in the USD/CAD pair. Check out the trading signal below.

Entry Price – Buy 1.31327
Stop Loss – 1.30927
Take Profit – 1.31727
Risk to Reward – 1:1
Profit & Loss Per Standard Lot = -$400/ +$400
Profit & Loss Per Micro Lot = -$40/ +$40
Fellas, now you can check out forex trading signals via Forex Academy mobile app. Follow the links below.
iPhone Users: https://apps.apple.com/es/app/fasignals/id1521281368
Andriod Users: https://play.google.com/store/apps/details?id=academy.forex.thesignal&hl=en_US

Categories
Forex Signals

USD/CAD Facing Hard Time Below 1.3110 – Quick Sell Trade! 

The USD/CAD succeeded to extend its early day bullish bias and hit the intra-day high well above 1.3100 level mainly due to the broad-based US dollar strength backed by the Friday released upbeat US jobless rate and wage growth data. The US dollar gains were also supported by the high safe-haven demand in the market. Across the pond, the reason for the currency pair bullish bias could also be attributed to the weaker oil prices which ultimately undermined the demand for the commodity-linked currency the loonie, and contributed to the currency pair gains. 

The market trading sentiment reporting losses on the day as the US-China tussle picked up the pace. As well as, the gloomy headlines concerning the Brexit also weighed on the market trading sentiment, which eventually increased the safe-haven demand in the market. This, in turn, underpinned the US currency.

Also supporting the US dollar was the upbeat US labor market report. At the data front, the headline Non-farm payrolls data for August missed expectations with +1371K. However, the unemployment rate dropped to 8.4%.vs 9.8% expected. In the meantime, the Average Hourly Earnings exceeded predictions, with +0.4% MoM in August vs. 0% expected.

The USD front, the broad-based US dollar managed to maintain its bullish trend and remains on the bullish track on the day. However, the US dollar gains were also supported by the upbeat US labor market report, that reported a drop in the U.S. unemployment rate, and a surge in U.S. Treasury yields. Thus, the gains in the US dollar kept the currency pair higher. Whereas, the U.S. Dollar Index that tracks the greenback against a basket of other currencies edged up 0.18% to 92.882 by 12:05 AM ET (5:05 AM GMT).

Across the Ocean, the crude oil prices remain on the bearish track as Saudi Arabia started the massive monthly price cuts for supply to Asia in 5-months. Also weighing on the oil prices were the fears of oversupply amid the coronavirus pandemic. Thus, the declines in oil prices undermined demand for the commodity-linked currency the loonie and contributed to the currency pair gains. 

The U.S. market could be inactive today in the wake of the U.S. labor day holiday. However, the updates on the virus and Sino-American tension will be key to watch. In the meantime, the market players will be interested in the headlines concerning the Brexit.


The USD/CAD is trading at 1.3094 level, holding right below a strong resistance level of 1.3112 level. Closing of a doji candle below 1.3112 level may trigger selling until 1.3042 level. Checkout forex trading signal below.

Entry Price – Sell 1.3099

Stop Loss – 1.3139

Take Profit – 1.3059

Risk to Reward – 1:1

Profit & Loss Per Standard Lot = -$400/ +$400

Profit & Loss Per Micro Lot = -$40/ +$40

Fellas, now you can check out forex trading signals via Forex Academy mobile app. Follow the links below.

iPhone Users: https://apps.apple.com/es/app/fasignals/id1521281368

Andriod Users: https://play.google.com/store/apps/details?id=academy.forex.thesignal&hl=en_US

Categories
Forex Signals

USD/CAD Bouncing Off Support – Downward Channel Pressures!

During Tuesday’s European trading session, the USD/CAD currency pair extended its early-day losses and dropped to the intra-day low below the mid-1.3000 level, mainly due to the broad-based U.S. dollar weakness. The U.S. dollar was down over bets on continuous low U.S. Rates. The U.S. Federal Reserve’s introduced a new policy framework on August 28, which fueled speculations that rates in the U.S. will continue to remain low. This, in turn, undermined the greenback and contributed to the currency pair losses.

The reason for the sharp declines in the currency pair could also be attributed to the mild gains in the crude oil prices, which underpinned the commodity-linked currency, the Loonie, and contributed to the currency pair’s declines. The USD/CAD currency pair is currently trading at 1.2999 and consolidating between 1.2993 – 1.3048.

Despite the US-China tussle, the global market risk sentiment remained well supported by optimism over a possible coronavirus vaccine. Besides this, the positive comments from the American Treasury Secretary Steve Mnuchin boosted the hopes of the U.S. stimulus package, which also exerted a positive impact on the trading sentiment and made the U.S. dollar unable to put any safe-haven bids.

At the USD front, the broad-based U.S. dollar remained depressed as the investors continue to sell U.S. dollars on the dovish Fed’s back. The Federal Reserve’s new policy structure keeps the doors open that interest rates in the U.S. will continue to remain low compared to other countries, which support the U.S. dollar under pressure. The losses in the U.S. dollar kept the currency pair lower. As a result, the U.S. dollar hit the 28-month low while declined to 91.99 despite the Dallas Fed Manufacturing Business Index growing beyond -3 to +11 in August. Whereas, the U.S. Dollar Index Futures that tracks the greenback against a bucket of other currencies dropped by 0.21% to 91.938 by 10:07 PM ET (3:07 AM GMT).

Moving forward, the market traders will keep their eyes on August’s U.S. manufacturing activity data, which is a schedule` to be released later in the day. The U.S. durable goods and employment data will also be key to watch. In the meantime, the updates surrounding the fresh Sino-US tussle, this time over the South China Sea, and the coronavirus (COVID-19) updates, could not lose their importance.


The USD/CAD is trading at 1.3009 level, having violated the support level of 1.3050 support level, which is now working as a resistance. On the lower side, the pair is likely to find support at 1.2975 level. The USD/CAD can drop further until the next support area of 1.2975 level. The MACD and RSI are also supporting selling, while 50 periods EMA also suggests a selling trend in the USD/CAD pair. Let’s consider selling below 1.3050 level today. Keep following Forex. Academy for quick trading signals. Good luck!

Categories
Forex Signals

USD/CAD Violates Descending Triangle Pattern – An Update on Signal! 

During Thursday’s European trading session, the USD/CAD currency pair failed to stop its Asian session from losing streak and dropped further below the mid-1.3200 level, mainly due to the U.S. dollar weakness triggered by gloomy U.S. economic outlook and lingering uncertainty over the U.S. stimulus package. 

On the other hand, the weaker oil prices due to the OPEC bearish fuel demand prediction, and US-China on-going war, undermined the commodity-linked currency the loonie which helped the currency pair to limit its deeper losses. Currently, the USD/CAD currency pair is currently trading at 1.3215 and consolidating in the range between 1.3209 – 1.3257.

Considering the on-going condition between the US-China, China’s Assistant Commerce Minister said he hopes the U.S. will create conditions for the implementation of the phase-1 trade deal. He further added that the COVID-19 and U.S. export control measures hurt Chinese purchases on U.S. goods and services. However, traders gave little attention to the above statement.

On the other hand, the on-going deadlock over additional stimulus measures to support the economic recovery from the coronavirus pandemic also weighed on the market risk sentiment.

This, in turn, the broad-based U.S. dollar failed to gain bullish momentum and reported losses on the day as the United States was still fighting the coronavirus. However, the weakness in the U.S. dollar kept the pair under pressure.

At the crude oil front, the WTI crude oil prices remain depressive around $42 levels as fears about the lower oil demand fueled after the OPEC said in its monthly report that the fuel demand will likely fall more than expected. This statement initially overshadowed the U.S. government data, which showed a decline in inventories and suggested that demand is recovering despite the coronavirus pandemic. However, the losses in the crude oil undermined the commodity-linked currency the loonie, which helped limit the pair’s deeper losses.

Looking forward, the market players will closely follow the release of the U.S. Initial Weekly Jobless Claims, which will affect the USD price dynamics and produce some meaningful direction for the currency pair. In the meantime, the traders will also keep their eyes on the news concerning the U.S./China. 


Technically, the USD/CAD has formed a descending triangle pattern that provided support at 1.3235 level, and it has now been violated. The USDCAD pair has violated the double bottom support area of 1.3235 level. Closing of candles below this level confirms a breakout; therefore, the odds of further selling below the 1.3235 level increase, and it can lead to USD/CAD prices until 1.3160. A slight bullish retracement could be seen until 1.3235 level before the pair continues trading lower. Check out the trade plan… 

Entry Price – Sell 1.32282
Stop Loss – 1.32682
Take Profit – 1.31882
Risk to Reward – 1:1
Profit & Loss Per Standard Lot = -$400/ +$400
Profit & Loss Per Micro Lot = -$40/ +$40

Fellas, now you can check out forex trading signals via Forex Academy mobile app. Follow the links below.

iPhone Users: https://apps.apple.com/es/app/fasignals/id1521281368

Andriod Users: https://play.google.com/store/apps/details?id=academy.forex.thesignal&hl=en_US

Categories
Forex Signals

USD/CAD Fakesout Hitting Our Stop Loss – What’s Next?

During Tuesday’s early European trading session, the USD/CAD currency pair failed to stop its Asian session losing streak and dropped further below the 1.3400 level mainly due to the U.S. dollar weakness that was triggered by gloomy U.S. economic outlook and witnessed by the Job losses in the U.S. manufacturing sector. The weaker oil prices due to the continuous surge in COVID-19 cases, US-China on-going war, and OPEC Production Boosts undermined the commodity-linked currency the loonie, which helped the currency pair to limit its deeper losses. At this particular time, the USD/CAD is trading at 1.3384 and consolidating in the range between 1.3358 – 1.3405.

If talking about the U.S. virus condition, the United States crossed 4 million officially recorded Covid-19 cases and covered a significant part of that recorded in just the last 15 days, which eventually ruined hopes for a quick economic recovery.

Despite this, the U.S. President Donald Trump has decided to reopen the country and said in the White House press conference that the permanent lockdown was not a workable plan to fight COVID-19. He also gave hopes about the virus vaccine and said that the U.S. would have a vaccine by the end of the year. The risk-off market sentiment was faded away after this statement that leads to the losses in the USD/CAD pair.

At the USD front, the broad-based U.S. dollar failed to continue its bullish momentum that was supported by the earlier U.S. data. The U.S. dollar reported losses on the day as the United States was still fighting the coronavirus, and the economic recovery hopes were declined because of that. However, the weakness in the U.S. dollar kept the pair under pressure. Whereas, the U.S. Dollar Index that tracks the greenback against a basket of other currencies was stood at % 93.498.

At the crude oil front, the WTI crude oil prices remain around $40 levels as concerns about the continuous surge in COVID-19 cases could halt fuel demand recovery. The increase in the Organization of the Petroleum Exporting Countries (OPEC) production made by Saudi Arabia also weighed on the oil prices. However, the crude oil losses undermined the commodity-linked currency the loonie, which helped limit deeper losses in the pair. Looking forward, the market players will closely follow the virus updates and U.S. fiscal news, which will entertain market players amid a light calendar.


On the hourly timeframe, the commodity currency pair violated the support level of 1.3380 level, which worked as a triple bottom. It was supposed to lead the USD/CAD prices further lower until 1.3335 level. But unfortunately, the breakout pattern turned out to be a fakeout pattern, and the pair reversed to trade at 1.3420. Right after testing the stop loss, the USD/CAD pair reversed again, this time in our favor, but our position is already closed at SL. For now, let’s wait a bit before taking another selling trade. Good luck!

Categories
Forex Signals

USD/CAD Broke Below Triple Bottom Support – Let’s Capture Retracement!

During the late European session, the USD/CAD pair exhibited sharp selling to drop below 1.34678 support level. Overall, the movement of the USD/CAD pair remained bearish throughout the day. The USD/Cad pair posted losses on the back of the broad-based US dollar weakness and rising crude oil prices.

The weaker US dollar pushed the USD/CAD pair onto the downside on Monday. The US Dollar Index fell from the 96 levels, close to the 95.85 level, weighing on the greenback. Due to the rising number of coronavirus cases in the US, the US dollar lost its safe-haven status.

The record-high number of COVID-19 cases in the US made the outlook for the US economy gloomy because on one side, the US government was reluctant to re-impose lockdown measures, and on the other side, cases of the virus were increasing day by day.

The US coronavirus death count surpassed the 140,000 level, and the total cases that have appeared in the US have risen to over 3.8M. This jeopardized the US dollar’s safe-haven status, as investors became cautious about investing in the greenback, and started favoring other safer assets.

The US dollar, which was weak across the board, due to the absence of any macroeconomic data, dragged the USD/CAD pair down.

On the other hand, the WTI Crude Oil price broke its bearish bias and posted small gains on Monday, amid hopes for a coronavirus vaccine. The first trials in Britain, which included more than a thousand adults, showed that the vaccine could induce strong antibody production and trigger immune responses against the novel coronavirus.

Separate trials in China, involving more than 500 people, showed that most test persons developed widespread antibody immune responses. This news raised hopes that the virus vaccine was not far away, and that the economies would get back to normal soon, causing the oil demand to surge. The hopes for increased energy demand, triggered by hopes for a virus vaccine, gave crude oil prices a push on Monday.

The WTI Crude Oil price was also up following the US Dollar Index that fell below the 96 levels, to 95.85, weighing on the US dollar. The US dollar and crude oil have a negative correlation, which caused crude oil to remain strong against the US dollar, even on Monday.

The increased crude oil prices gave strength to the commodity-linked Loonie, ultimately adding to the USD/CAD pair’s losses. No macroeconomic data was released on Monday, so the USD/CAD pair continued to follow the coronavirus updates and crude oil movements.


The USD/CAD has violated the triple bottom support level on the 1.350 level, and now, the USD/CAD pair is trading at 1.3450 level. The immediate support stays at 1.3443 level. The formation of a hammer pattern on the hourly chart may help us secure a bullish correction in the USD/CAD pair. On the higher side, the oversold pair has the potential to go after 1.3480 and 1,3504 level. Check out a quick trade plan to follow during the U.S. session. 

Entry Price – Buy 1.3461

Stop Loss – 1.3421

Take Profit – 1.3501

Risk to Reward – 1

Profit & Loss Per Standard Lot = -$400/ +$400

Profit & Loss Per Micro Lot = -$40/ +$40

Fellas, now you can check out forex trading signals via Forex Academy mobile app. Follow the links below.

iPhone Users: https://apps.apple.com/es/app/fasignals/id1521281368

Andriod Users: https://play.google.com/store/apps/details?id=academy.forex.thesignal&hl=en_US

Categories
Forex Signals

USD/CAD Breakout of Upward Channel – Brace for Sell!

The USD/CAD failed to stop its previous meeting, losing streak and dropped to 1.3566 level. However, the declines in the currency pair were completely sponsored by the emergence of some U.S. dollar selling bias in the wake of modest risk-on market sentiment backed by the hopes of heavy stimulus from global policymakers. The weaker oil prices triggered by the continuous surge in COVID-19 cases undermined the commodity-linked currency, the loonie also kept a lid on any additional losses in the currency pair. At this particular time, the USD/CAD currency pair is currently trading at 1.3569 and consolidating in the range between 1.3561 – 1.3600.

Despite the heightened concerns of the increasing number of confirmed coronavirus cases across the world, the investors continued cheering the hopes about the coronavirus vaccine, which overshadowed the fears of the virus’s ever-increasing numbers. Moreover, the modest risk-on market sentiment was further bolstered by the fresh COVID-19 stimulus measures from the global policymakers, which are expected to deliver in the week.

However, the traders did not give any major attention to the concerns over the further deterioration in relations between the world’s two largest economies. The U.S. President Donald Trump was considering to impose travel restrictions on all members of the Chinese Communist Party. 

At the crude oil front, the WTI crude oil prices remain depressed and flashed mixed signals around 40.25 levels as concerns about the continuous surge in COVID-19 cases could halt fuel demand recovery. However, the crude oil losses, which undermined the commodity-linked currency the loonie, helped limit losses for the pair. The traders will keep their eyes on the USD price dynamics and coronavirus headlines, which could play a key role in influencing the intraday momentum. As well as, the traders will keep their eyes on the news concerning U.S.-China. 


The USD/CAD is trading with a selling sentiment at 1.3590 level, testing a support level of 1.3590 level. The recent candle closing is bearish engulfing, which suggests that there are still odds of bearish trend continuation, and if this happens, the pair can drop to 1.3550 level. Below this, the next support level is expected to go after the 1.3490 level. Let’s look for selling trades below 1.3620 level today. 

Entry Price – Sell 1.35646

Stop Loss – 1.36046

Take Profit – 1.35246

Risk to Reward – 1

Profit & Loss Per Standard Lot = -$400/ +$400

Profit & Loss Per Micro Lot = -$40/ +$40

Fellas, now you can check out forex trading signals via Forex Academy mobile app. Follow the links below.

iPhone Users: https://apps.apple.com/es/app/fasignals/id1521281368

Andriod Users: https://play.google.com/store/apps/details?id=academy.forex.thesignal&hl=en_US

Categories
Forex Signals

USD/CAD Breaks Below 1.3600 – Quick Update on Trading Signal!

Today in the European trading session, the USD/CAD currency pair flashed red and hit the intra-day low to 1.3575 level due to the risk-on market sentiment, which undermined the broad-based U.S. dollar and sent the currency pair lower. The reason for the losses in the pair could also be attributed to the upticks in the crude oil prices that underpinned the commodity-linked currency the Loonie and contributed to the currency pair declines.

Despite the continued rise in the number of coronavirus cases globally and the on-going Sino-American conflict, the market traders cheered the optimism concerning the success of the vaccine confirmed by the upbeat signals from Moderna and U.S. President Donald Trump’s comments on the COVID-19 vaccine. It should be noted that Moderna’s potential vaccine to stop Covid-19, which was first reported as safe, back in mid-May, offered hope about the vaccine’s success. CNBC reported that the vaccine produces neutralizing antibodies in all 45 patients in its early stage human trial. Meanwhile, President Trump also said that the vaccine would be available for use in record-breaking time. This positive new offered the latest strength to the risk-tone.

As in result, the market’s risk-tone sentiment remained mildly positive, with the U.S. stock futures up nearly 1.0%. Additionally, U.S. 10-year Treasury yields added 1.6 basis points to extend the previous day’s recovery moves past-0.63%.

At the coronavirus front, the COVID-19 situation continued to worsen globally. As in result, California Governor Gavin Newsom has recently ordered the re-imposition of social-distancing measures across the largest U.S. state. Whereas, the most populous state’s two largest school districts, Los Angeles and San Diego, also decided to teach only online when classes resume in August. Apart from the U.S., the Japanese Economy Minister Yasutoshi Nishimura said that his government could declare an emergency if infections grew further. However, the ever-increasing coronavirus fears initially challenged the risk-on market sentiment.

Apart from virus worries, the Sino-American tension was heated as the U.S. rolled out sanctions on diplomats from Beijing while also defied Hong Kong’s special treatment. The Republican leader recently criticized China for Hong Kong security law and held it responsible for the pandemic (COVID-19) during his on-going Rose Garden press conference. In the meantime, Trump said he had convinced many countries not to use Huawei, and he also added that “We can impose further massive tariffs on China if we desire.” 

Despite this, the broad-based U.S. dollar reported losses on the day, possibly due to the upbeat trading sentiment backed by multiple factors. Although, the losses in the U.S. dollar supported the currency pair gains. Whereas, the U.S. Dollar Index that tracks the greenback against a basket of other currencies dropped by 0.11% to 96.073 by 9:50 PM ET (2:50 AM GMT).

At the crude oil front, WTI crude oil prices took bids around $41 on the day backed by the sharp drop in U.S. crude inventories, which helped investors to improve their confidence about oil demand. However, the data indicated an improvement in demand despite the increased number of appearing coronavirus cases worldwide. Although the upticks in the crude oil prices underpinned the commodity-linked currency, the Loonie and exerted some downside pressure on the currency pair.

Looking forward, the market traders await the U.S. economic docket, which will show the release of the Empire State Manufacturing Index and Industrial Production. The market traders will keep their eyes on the USD price dynamics and coronavirus headlines, which could play a key role in influencing the intraday momentum. Whereas, the updates concerning China-US Relations could not lose their importance.


The USD/CAD is consolidating with a selling bias at the 1.3590 mark, testing a support mark of 1.3590. It recently has formed on a bearish engulfing bar, which implies that there are yet chances of a continuation of the bearish trend, and if that happens, the pair could drop to the 1.3550 level. Below this, the next support level is expected to go after the 1.3490 level. Let’s look for selling trades below the 1.3620 level today.

Entry Price – Sell 1.35763

Stop Loss – 1.36163

Take Profit – 1.35363

Risk to Reward – 1

Profit & Loss Per Standard Lot = -$400/ +$400

Profit & Loss Per Micro Lot = -$400/ +$400

Fellas, now you can check out forex trading signals via Forex Academy mobile app. Follow the links below.

iPhone Users: https://apps.apple.com/es/app/fasignals/id1521281368

Andriod Users: https://play.google.com/store/apps/details?id=academy.forex.thesignal&hl=en_US

Categories
Forex Signals

Overbought USD/CAD Braces for Retracement – Who’s Up for Selling?

During Friday’s early European trading session, the USD/CAD currency pair succeeded in breaking its previous day consolidation phase and hit the 1-1/2-week high just above mid-1.3600 level, mainly due to the broad-based U.S. dollar strength backed by the downbeat trading sentiment.

On the other hand, the reason for the currency pair gains could also be attributed to the weaker oil prices, which eventually undermined the demand for the commodity-linked currency the loonie and contributed to the currency pair gains. At the moment, the USD/CAD currency pair is currently trading at 1.3614 and consolidating in the range between 1.3574 – 1.3632.

Investors seemed cautious about the increasing number of new coronavirus cases globally and the probability of renewed lockdowns restrictions to control the spread, which eventually overshadowed the prospects for a sharp V-shaped global economic recovery. As per the latest report, the U.S. cases crossed a total of 3.0 million marks and reported over 60,000 cases Over 12.2 million cases and 550,000 deaths globally were reported as of July 10, as per John Hopkins University data. Most of the states like Florida, Texas, and California, reported a record-high number of new cases on Thursday.

However, the gloomy outlook was further bolstered by the ongoing tussle between the United States and China. The conflict between both parties was further fueled after Trump administration member Mike Pompeo announced visa restrictions on the People’s Republic of China (PRC) government and Chinese Communist Party officials over creating hardships for foreigners to visit Tibet. As well as, the United States imposed another sanction on the highest-ranking Chinese official over alleged human rights abuses against the Uighur Muslim minority which exerted some downside pressure on the risk-tone and contributed to the currency pair declines.


The USD/CAD pair is examining a double top resistance mark of 1.3635, and that is where we can anticipate a sell-off in the USD/CAD currency pair. On the 4 hour chart, the closing of a selling candle, known as engulfing candle, suggests chances of selling unto 1.3580 level. Here’s a quick trade plan.

Entry Price – Sell 1.36003

Stop Loss – 1.36403

Take Profit – 1.35603

Risk to Reward – 1

Profit & Loss Per Standard Lot = -$400/ +$400

Profit & Loss Per Micro Lot = -$400/ +$400

Fellas, now you can check out forex trading signals via Forex Academy mobile app. Follow the links below.

iPhone Users: https://apps.apple.com/es/app/fasignals/id1521281368

Andriod Users: https://play.google.com/store/apps/details?id=academy.forex.thesignal&hl=en_US

Categories
Forex Signals

USD/CAD Crossover 50 EMA – Can Upward Trendline Drive More Buying? 

The USD/CAD currency pair extended its previous day winning streak and rose to 1.3580 level, mainly due to the declines in the crude oil prices, which tend to undermine the commodity-linked currency the loonie and contributed to the pair’s modest gains. The broad-based U.S. dollar strength initiated by the fresh pickup in the U.S. Treasury bond yields turned out to be one of the key factors that kept currency pair higher, at least for now. Currently, the USD/CAD currency pair is currently trading at 1.3562 and consolidating in the range between 1.3525 and 1.3583.

Moreover, the gain in the currency pair was further bolstered by the downbeat comments from the BOC Governor Macklem that they expect more coronavirus outbreaks as the economy reopens, which initially weighed on the Canadian dollar but the comments burden was short-lived.

The broad-based U.S. dollar stopped its early-day losses and mainly took fresh bids due to a rise in the U.S. Treasury bond yields. As well as, the remaining uncertainty in the market backed by trade and virus worries also lend some support to the U.S. dollar. Whereas the U.S. 10-year Treasury yields remained positive, around 0.72% and stocks in Asia flashed mixed signals. However, the U.S. dollar’s fresh gains turned out to be one of the key factors that kept the currency pair higher. The dollar index, which measures the greenback performance versus a basket of six other currencies, was up 0.15% at 96.798. 

At the Crude oil front, the WTI crude oil prices failed to stop its previous day losing streak and dropped below $40.00 level on the day mainly due to the bearish U.S. inventory report released by the American Petroleum Institute (API) which eventually added worries about oversupply and contributed to the oil declines. The selling bias in the oil prices ultimately undermined the commodity-linked currency the loonie and contributed to the pair’s modest gains.

The traders will keep their focus on the USD price dynamics and the broader risk sentiment. This makes it reasonable to wait for some strong follow-through strength before confirming that the USD/CAD pair might have bottomed out.


Technically, the USD/CAD is supported around 1.3489 level, and closing of candles above this level is suggesting odds of bullish trend continuation. Recently, the USD/CAD has also crossover over the 50 EMA from the lower side to up, making it a bullish crossover. The bullish crossover demonstrates that traders are trading and supported the bullish bias, and we seem to have a chance to capture a quick buying position in the USD/CAD pair. Here’s a quick trade signal. 

Entry Price – Buy 1.35759    

Stop Loss – 1.35359

Take Profit – 1.36159    

Risk to Reward – 1

Profit & Loss Per Standard Lot = -$400 / +$400

Profit & Loss Per Micro Lot = -$400/ +$40

Categories
Forex Signals

USD/CAD Bearish Engulfing Continues to Drive Selling! 

During the early European trading session, the USD/CAD currency pair failed to stop its previous day bearish run-up and dropped to 1.3570 from the 1.3617 level, mainly due to the broad-based U.S. dollar weakness backed by the risk-on market sentiment. As well as, the reason for the pair declined could also be attributed to the upticks in crude oil, which underpinned the commodity-linked currency the loonie and contributed to the pairs declines. 

On the other hand, the losses of the currency pair were further bolstered by the positive comments from the Canadian Finance Minister Bill Morneau about (not considering a tax hike), which initially gave additional support to the loonie. Despite the increasing coronavirus cases in China and some U.S. states, the Asian stocks flashed green backed by optimism about the monetary and fiscal support programs from across the globe in the wake of the coronavirus outbreak. 

On the contrary, the fresh optimism between the United States and China triggered by China’s decision to increase purchases of U.S. farm goods to respect the Phase One trade deal after the talks in Hawaii overshadowed their other concerns and gave additional support to the risk sentiment.

As a result, the broad-based U.S. dollar reported losses that played a key role in the decline of the currency pair. The latest upbeat U.S. jobless claims also suggested a further economic recovery, which also boosted the risk-on market sentiment and pushed the USD lower. In the meantime, the intensifying coronavirus cases will keep a lid on any further losses in the U.S. dollar. 

At the crude oil front, the WTI crude oil prices rose around 3% on the day and hit the 3-month high around the $40.00/barrel mark, mainly due to the reports that Iraq and Kazakhstan have promised to agree with oil cuts. The sign of gradual recovery across the globe was triggered after easing government lockdowns imposed to control the coronavirus, which eventually boosted the oil prices.

However, the oil price gain underpinned demand for the commodity-linked currency – the loonie which kept the currency pair under pressure. The traders will keep their focus on Friday’s Canadian economic docket, which will show the release of monthly retail sales data for a fresh impetus. As well as, the Fed Chair Jerome Powell’s comments at a panel discussion will likely influence the USD price dynamics and further contribute to producing some trading opportunities.


Technically, the USD/CAD is on a bearish mode, as we can see, the pair has crossover below 50 EMA support level of 1.3568. Below this, the market has an opportunity to drop until the next support level of 1.3530 level. The MACD also just had a bearish crossover, which is supporting the selling trend in the USD/CAD pair. Here’s a trading signal on USD/CAD for today.

Entry Price – Sell 1.3587    

Stop Loss – 1.35738    

Take Profit – 1.34938

Risk to Reward – 7.06

Profit & Loss Per Standard Lot = +$130 (SL in Positive Zone) / +$930 

Profit & Loss Per Micro Lot = -$13/ +$93

Categories
Forex Signals

USD/CAD Breaks Lower – Quick Update on Sell Signal! 

During Friday’s European trading session, the USD/CAD currency pair flashing red and dropped below the key 1.3500 psychological marks due to the selling bias in the broad-based US dollar triggered by the optimism about a sharp V-shaped recovery for the global economy. The modest upticks in the crude oil prices underpinned the demand for the commodity-linked currency the loonie and exerted some downside pressure on the currency pair. At this particular moment, the USD/CAD currency pair is currently trading at 1.3485 and consolidates in the range between the 1.3459 – 1.3513.

The reason for the risk-on market sentiment could be attributed to the growing optimism over a sharp V-shaped economic recovery from the coronavirus pandemic, which recently dominated the US-China ongoing tensions and made the broad-based US dollar weaker. US President Donald Trump’s comments further bolstered relationships between the world’s two largest economies that the Chinese government has continually violated its promises to the US and many other countries. 

At the USD front, the broad-based US dollar erased its early-day modest gains and dropped to 96.600, mainly due to the risk-on market sentiment which ultimately exerted some downside pressure on the currency pair. Whereas, the US dollar index drops 0.22% to a new three-day low of 96.46, having stopped the overnight bounce near 96.80.


At the crude oil front, the modest upticks in crude oil prices strengthened demand for the commodity-linked currency the Candian dollar and further contributed to the weaker tone in the USD/CAD currency pair. However, the Oil prices regained some traction due to the hopes that major oil producers (OPEC+) will extend the production cuts when they meet on Saturday. It remains to see if the USD/CAD pair continues to attract some buying near a technically significant moving average or ace further seeling bias to confirm a fresh near-term bearish breakdown. Looking forward, Friday’s monthly jobs report from the US (NFP) and Canada will be a key watch. We have entered a sell trade below 1.3469 level, and now it’s expected to lead the pair further lower towards the area of 1.3345. 

Entry Price – Sell 1.34615    

Stop Loss – 1.35115    

Take Profit – 1.34115

Risk to Reward – 1.00

Profit & Loss Per Standard Lot = -$500/ +$500

Profit & Loss Per Micro Lot = -$50/ +$50

Categories
Forex Signals

USD/CAD Ascending Triangle Breakout – Brace for a Buy Position! 

The USD/CAD pair was closed at 1.39549 after placing a high of 1.39701 and a low of 1.38908. Overall the movement of USD/Cad pair remained bullish throughout the day.

At 17:30 GMT, the ADP Non-Farm Employment Change in April reported a job loss by 226.7K and weighed on Canadian Dollar. The New Housing Price Index (NHPI) for April exceeded the expectations of -0.1% and came in positive as 0.0% and supported Canadian Dollar. Mixed data from Canada failed to give an impact on the USD/CAD pair on Thursday.

Meanwhile, the WTI Crude Oil Prices surged to $34.6 on Thursday amid increased demand after easing of lockdown from all over the world. Increased oil prices gave strength to commodity-linked Loonie, which kept a lid on additional gains of USD/CAD pair.


On the technical front, the USD/CAD prices have violated the ascending triangle pattern, which can be seen in the chart above. The pattern was supporting the pair at 1.3935, along with resistance at 1.3965 level. On the higher side, the USD/CAD prices are holding above 1.3970 now, and these may go towards 1.4018 now. The MACD and 50 EMA are also in support of the bullish trend. 

Entry Price – Buy 1.39654    

Stop Loss – 1.39254

Take Profit – 1.40254    

Risk to Reward – 1.12    

Profit & Loss Per Standard Lot = -$400/ +$500

Profit & Loss Per Micro Lot = -$40/ +$50

Categories
Forex Signals

USD/CAD Recovers from Losses – WTI Up for Retracement! 

The USD/CAD pair was closed at 1.40460 after placing a high of 1.41406 and a low of 1.40318. Overall the movement of the USD/CAD pair remained bearish throughout the day. After posting gains for the last 3 days, the USD/CAD pair dropped on Thursday amid the increased demand for crude oil. WTI Crude Oil gained ground after the International Energy Agency (IEA) improved its oil demand outlook for 2020. Oil prices rose to $27.92 barrel on Thursday and gave strength to commodity-linked currency-Loonie. 

Strong Canadian Dollar against the US dollar pulled the USD/CAD pair on Thursday to post losses after rising for the last three days. On the other side, the US dollar continued to get support from the increased fears in the market related to the second-wave of coronavirus after easing of lockdowns started throughout the globe.

Multiple Health experts have warned about the consequences for opening the economy too soon, saying that a hasty opening could lead to a bigger health crisis, which would ultimately lead to more economic damage.

The US Initial Jobless Claims last week showed a surge to 2.9M against the 2.5M expectations and weighed on the US dollar, which added in the downfall of USD/CAD prices on Thursday.

From the Canada side, at 17:30 GMT, the Manufacturing Sales for March was declined by -9.2% against the forecasted decline by -4.4% and weighed on the Canadian Dollar. Meanwhile, on Thursday, The Governor of Bank of Canada, Stephen Poloz, said that the better times for oil have come after seeing an unprecedented collapse by COVID-19 and a destructive price war between Russia and Saudi Arabia.

He said that the impact of recent oil price shock on Canada’s economy was similar to the crash in late 2014 and early 2015. He said that the improved outlook and prices of crude oil were still very far from where they were before COVID-19, and the significant risk in the shape of the virus was still there.


Daily Technical Levels

Support Resistance

1.3995 1.4107

1.3956 1.4180

1.3883 1.4219

Pivot Point: 1.4068

On the technical side, the USD/CAD is trading at a price of 1.4070, and the upward channel is violated, providing support to the USD/CAD pair at around 1.4110 level. On the 2 hour timeframe, the USD/CAD has closed shooting star below 1.4113 trading level. Below this 1.4113 level, we may see USD/CAD prices dipping further until 1.4018 level, especially due to improved crude oil prices. Conversely, a bullish breakout of 1.4112 level may lead to the USD/CAD pair towards 1.4164 level. Good luck! 

Categories
Forex Market Analysis

USD/CAD on a Bullish Mode – Forms Higher’s High & Highers Low Pattern In Play!

During Thursday’s Asian trading hours, the WTI crude oil prices looking directionless despite Wednesday’s decrease US inventory report. However, the crude oil prices trading mostly unchanged on the day near the $25.40. Technically, the 4-hour chart shows prices are confined between the tight price range outlined by the trendlines from May 7 and May 13 highs and May 6 and May 7 lows. 

The reason for the confined trading could be attributed to the risk-off market sentient and second wave of coronavirus, which turned out to be one of the key factors that kept a lid on any gains in oil prices. The WTI crude oil is trading at 25.82 and consolidate in the range between the 25.20 – 26.00.

A range breakout would indicate a continuation of the recovery rally from lows below $10 observed in April. However, a bearish reversal would be confirmed if the range is breached to the downside. 

Thus, the breakout can’t be rejected because the US inventory report released Wednesday showed the 1st-decline in outputs since January. The US crude inventories dropped by 745,000 barrels last week, the Energy Information Administration said, compared with analysts’ expectations in a Reuters poll for a 4.1 million-barrel rise.

Support Resistance 

1.4032       1.4144

1.3962       1.4186

1.3919       1.4256

Pivot Point 1.4074

For the time being, the investors are cautious about placing any strong position mainly due to the fear of coronavirus second wave caused y easing lockdowns. As well as, the reason for the risk-off market sentiment could also be attributed to the renewed concerns concerning the economic slowdown. 

Categories
Forex Signals

Hard Luck, NZD/USD Stopsout – Let’s Focus On USD/CAD Setup! 

Earlier today, the NZD/USD trading signal got into losses and closed at stop-loss, costing us 60 red pips, even before we could update about its setup. The market is quite uncertain today and moving sideways without any clear setup. Anyways, now let’s take a look at the USD/CAD pair as it’s been on the move since the U.S. session has begun. 

A day before, the USD/CAD pair was closed at 1.41447 after placing a high of 1.41569 and a low of1.40226. Overall the movement of the USD/CAD pair remained bullish throughout the day. The pair USD/CAD posted dips during the Asian and European sessions following the reports of U.S. crude oil inventories showed a rise and reignited the oversupply concerns and hence affected the crude oil prices.

According to the American Petroleum Institute, the stockpiles of crude oil last week raised by 8.4Million barrels, which was more than the expected. 

Despite such inventory data, crude oil is making a bullish movement, causing a downtrend of USD/CAD was the report of Non-Farm Payrolls from the US ADP on Wednesday. 

The drop of more than 20 million jobs fell under the expectations and helped the U.S. dollar to pick up the pace. Strong U.S. dollar across the board added in the upward movement of USD/CAD pair and took its prices near 1.4157 level.

In the absence of any macroeconomic data from Canada, the pair USD/CAD relied on the U.S. dollar and crude oil prices on Wednesday. At 19:30 GMT, the Crude Oil Inventories from Energy Information Administration for last week showed that inventories dropped to 4.8M from 8.5M of expectations. The U.S. dollar was also strong on Wednesday due to the easing of lockdown measures across the globe, and this added in the rise of USD/CAD prices.


Daily Technical Levels

Support Resistance

1.4003 1.4093

1.3959 1.4139

1.3912 1.4183

Pivot Point: 1.4049

For now, the USD/CAD pair is making a strong sell movement, having dropped from 1.4130 to 1.3975 level. The pair has already completed 61.8% Fibonacci retracement at 1.3975, and below this, it can head to the next support level of 1.3900 level. Let’s keep an eye in 1.4020 level today, as selling trades can be seen below this level with a target of 1.3850 level. Good luck! 

Categories
Forex Signals

USD/CAD Gain Support Over Double Bottom – Who’s Up for Bullish Trade?  

The USD/CAD pair slipped sharply to form the double bottom pattern around 1.3864 level on the 4-hour chart. The primary reason behind a sharp sell-off in the USD/CAD pair is the risk-on market sentiment, which is increasing demand for crude oil following the report of successful clinical trials of Gilead Sciences’ retroviral drug Remdesivir. The drug will be used to treat those infected by COVID-19, and investors are expecting the market will be back to its feet once this medicine gets success.

With this, demand for oil will be strong again, and due to which, Loonie will gain bullish bias, causing USD/CAD pair to drop. The US dollar draws further offers in the wake of less heaven demand and exert some pressure on the USD/CAD currency pair.


From the technical perspective, the USD/CAD pair’s failure to register any meaningful recovery further indicates that the near-term bearish pressure could not finish soon. Therefore, the range-bound trading action might still be classified as a consolidation phase before the next leg of the pair’s bearish move. Before we see further selling in the USD/CAD pair, the odds of bullish retracement will remain strong. The USD/CAD pair may drive the pair’s prices towards 23.6% or 38.2% Fibonacci retracement level of 1.3915 and 1.3945, respectively. 

Entry Price: Buy at 1.38889    

Take Profit .1.39389    

Stop Loss 1.38489    

Risk/Reward 1.25

Profit & Loss Per Standard Lot = -$400/ +$500

Profit & Loss Per Micro Lot = -$40/ +$50

Categories
Forex Assets

What Should You Know About USD/CAD Forex Pair?

Introduction

USDCAD is the short form for the US dollar against the Canadian dollar. USDCAD, just like the EURUSD, GBPUSD, AUDUSD, etc. is a major currency pair. In this pair, the US dollar is the base currency, and the Canadian dollar is the quote currency. Trading this currency pair is known as trading the “loonie” because it is the name for the Canadian one-dollar coin.

Understanding USD/CAD

The exchange price of USD/CAD is basically the value of 1 USD in terms of CAD. It is quoted as 1 US dollar per X* Canadian dollars. For example, if the value of USDCAD is 1.3300, it means that it takes 1.3300 Canadian dollars to buy one US dollar.

*X is the current market price of USDCAD

USD/CAD Specification

Spread

The difference between the bid price and the ask price mentioned by the broker is the spread. Typically, this differs from the type of account.

Spread on ECN: 0.7

Spread on STP: 1.2

Fees

There is a fee (commission) on every trade a trader takes. This again depends on the type of account registered by the user. There is no fee on the STP account, but a few pips on an ECN account.

Note: We are considering fees in terms of pips, not currency units.

Slippage

Sometimes a trader is executed at a different price from what he had intended. This variation in price is known as slippage. Slippage takes place when orders are executed as a market type, and it depends on the volatility of the currency pair and also the execution speed of the broker.

Trading Range in USD/CAD

Trading analysis is not all about predicting when the prices will rise and fall. Sometimes, even though a trader knows the prices are going to rise/fall, it might not be ideal to jump on the trade without the knowledge of volatility of the market. Volatility range plays a major role in managing the total cost of a trade. Hence, it is vital to know the minimum, average, and maximum pip movement in each timeframe to assess the trading costs.

Below is a table that depicts the minimum, average, and maximum volatility (pip movement) on different timeframes.

USD/CAD PIP RANGES

Procedure to assess Pip Ranges

  1. Add the ATR indicator to your chart
  2. Set the period to 1
  3. Add a 200-period SMA to this indicator
  4. Shrink the chart so you can assess a large time period
  5. Select your desired timeframe
  6. Measure the floor level and set this value as the min
  7. Measure the level of the 200-period SMA and set this as the average
  8. Measure the peak levels and set this as Max.

USD/CAD Cost as a Percent of the Trading Range

With the min, average, and max pip movement, the cost range is calculated in terms of percentage. This percentage has no unit and determines if the width of the cost. That is, if the percentage is high, the cost is high for the trade, and if the percentage is low, the cost is low too.

Below are two tables representing the range of cost for an ECN account and an STP account.

ECN Model Account

Spread = 0.7 | Slippage = 2 | Trading fee = 1

Total cost = Slippage + Spread + Trading Fee = 2 + 0.7 + 1 = 3.7

STP Model Account

Spread = 1.2 | Slippage = 2 | Trading fee = 0

Total cost = Slippage + Spread + Trading Fee = 2 + 1.2 + 0 = 3.2

The Ideal way to trade the USD/CAD

As mentioned earlier, the higher the percentage, the higher is the cost for a trade. Applying this idea to the above tables, it can clearly be inferred that the percentages are high on the minimum column. This means that the costs are high when the volatility of the currency pair is very feeble.

Similarly, the costs are considerably low when the volatility is quite high. However, this does not mean that trading during high volatility is the ideal way. This is because the volatility is quite risky to trade volatile markets. Therefore, one must trade during those times of day when the market volatility is around the mentioned average. The costs are decent enough, and the risk is maintained just fine.

Another point of consideration is that costs are reduced significantly when the slippage is made nil. This can be made possible by entering and exiting a trade by placing a pending/limit order instead of executing them by market.

Below is the same cost percentage table after making the slippage value to 0.

Now it is evident from the above table that slippage eats up a significant amount of cost on each trade. Hence, limit orders are the way to go.

Categories
Forex Market Analysis

USD/CAD Completes 50% Retracement – Investor’s Eye Triple Top! 

The USD/CAD closed at 1.32993 after placing a high of 1.33014 and a low of 1.32542. Overall the movement of pair remained Bullish that day.

At 18:30 GMT, the Core Retail Sales from Canada came in favor of Canadian Dollar as 0.2% against the expectations of -0.1%, and the Retail Sales also supported the Loonie when came in as -0.1% against the expectations of -0.3%.

The Stronger than expected Retail Sales & Core Retail Sales data from Canada gave the impression of a robust Canadian economy in this time of global slowdown. The stronger Canadian Dollar pushed USD/CAD prices to the low of 1.32524 on Friday.

However, the pair USD/CAD got support from Strong US Dollar on Friday after the release of PMI from the United States. At 19:45 GMT, the Flash Manufacturing PMI of the United States showed an increase to 52.2 from the expectations of 51.5 for November. The Flash Services PMI was also increased to 51.6 for November from October’s 50.6. 

Stronger than expected PMI was very beneficial in raising the dropped USD/CAD on Friday. However, the upward trend for the pair continued and was further supported when the Consumer confidence from the University of Michigan was seen as favoring the USD. At 20:00 GMT, the Revised UoM Consumer Confidence Sentiment also raised to 96.8 from the expectations of 95.8.

The Crude Oil prices on Friday also dropped due to increased selling pressure by profit-taking activities of the traders who bought Crude Oil after the news of OPEC cut extension on Thursday. The fall in crude oil prices pressed the Commodity-linked Loonie, and hence, USD/CAD was further raised to place a high of 1.33014 at the ending day of the week.


USD/CAD – Daily Technical Levels

Support Resistance 

1.3269     1.3318

1.3237     1.3335

1.3187     1.3385

Pivot Point 1.3286

The commodity currency USD/CAD has completed 50% Fibonacci retracement at 1.3258. On the 2 hour graph, the pair has closed bullish engulfing candle, which is signaling bullish bias among traders. 

For the moment, the USD/CAD is facing strong support at 1.3290, along with a resistance at 1.3325. At the same time, the pair is also trading in a bullish channel, which is keeping the USD/CAD trading sentiment bullish.  

Consider staying bullish above 1.3286 with a stop loss below 1.3250 and take profit around 1.3325. All the best! </span

Categories
Forex Market Analysis

USD/CAD Completes 38.2% Fibo Retracement – Retail Sales Surpries!

The USD/CAD closed at 1.32846 after placing a high of 1.33249 and a low of 1.32694. Overall the trend for USD/CAD remained Bearish that day. Last month, the Central Bank of Canada held its Interest rates at 1.75% as expected and left the door open to a potential cut in later months. The Bank of Canada has not changed its monetary policy since October 2018, even its counterpart Banks, including the Federal Reserve of United States, has lowered its interest rates.

On Thursday, Stephen Poloz, the Governor of Central Bank of Canada, said that Canada’s monetary conditions were about right in the current economic situation, which has been challenged throughout by global trade tensions. He added that the central bank of Canada was watching whether the trade uncertainties affect the confidence of the economy in order to decide its future plans. In his views, the monetary conditions were about right in given situations.

He also compared the Canadian economic state with American and said that Federal Reserve cut its rates three times and was now down to where the Canadian rates were. He further added that Bank of Canada was concerned that the Canadian economy relies heavily on exports, and the global trade disputes, including the US-China trade war, were affecting it.

Stephen Poloz also mentioned about the new models that Bank of Canada was built on understanding the significant consequences climate change could impose on financial stability. The positive comments about the Canadian economy from Poloz gave strength to the Canadian Dollar and weighed on USD/CAD prices on Thursday.
On Data front, the ADP Non-Farm Employment change from Canada came in as -22.6K against the previous 25.7K.

Furthermore, the Crude Oil WTI prices rose on Thursday amid the hopes of OPEC cut extension and supported the rising Commodity Linked Currency – Loonie, which added in the Bearish trend of USD/CAD.

The downward trend of USD/CAD was also supported by the weak macroeconomic data from the American side on Thursday. At 18:30 GMT, the US Unemployment Claims for this week exceeded the expectations of 215K and came in as 227K and gave pressure to US dollars. At 20:00 GMT, the CB Leading Index came in as -0.1%, which was as expected. The Existing Home Sales also gave pressure to US Dollars when it came in as 5.46M against the expectations of 5.49M.

Besides, the Canadian retail sales data has just come out, and it may drive sell-off in the USD/CAD pair in the wake of optimistic data. Retail sales surged by 0.2% vs. a drop of 0.1% during the previous month.


USD/CAD- Daily Technical Levels
Support Resistance
1.326 1.3315
1.3237 1.3348
1.3182 1.3403
Pivot Point 1.3293

Technically, the USD/CAD has a complete 38.2% retracement at 1.3274, but the MACD histogram is holding below 0 levels suggesting further selling bias. The bearish breakout pattern can trigger a sell-off until 50% and 61.8% Fibo level of 1.3260 and 1.3240 level. Let’s consider staying bearish under .13293 level today. All the best!

Categories
Forex Market Analysis

USD/CAD Trade Plan, While BOC Keeps Rate Unchanged!

The USD/CAD closed at 1.30856 after placing a high of 1.31003 and a low of 1.31420. The overall movement of the pair remained Bullish that day. Central Bank of Canada and Federal Reserve of United States both will hold their Policy Meeting on Wednesday. Ahead policy meeting, both currencies remained under pressure on Tuesday.

Loonie remained under pressure because of falling Crude Oil prices on Tuesday and supported the USD/CAD upward trend. The traders took repositioning ahead policy meetings to gain profit on Wednesday.
The BOC has not cut its rates since 2015, and there are no chances for further rate cuts this month.

However, the Federal Reserve is anticipated to cut its rates by 25 basis points in the meeting of October. But the chances for the third rate cut by fed are also decreased due to the raised optimism of the US-China trade deal & Brexit Extension.

Although there are no chances of rate cuts from Bank of Canada in October, the December cut is not out of the board. Some analysts suggest that the labor markets are stronger, inflation is on target, and the rates are already lower than US rates, but some factors indicate the need for December cut, and they can’t be ruled out.

Despite the weak Consumer Confidence form United States, the pair continued to move in an upward direction. USD/CAD rose sharply on Tuesday and crossed 1.31 level, but it dropped after reaching that point.



USD/CAD – Daily Technical Levels

Support Resistance
0.6846    0.6875
0.683      0.6888
0.68        0.6918
Pivot Point 0.6859

The USD/CAD is staying steady below 1.3100 level, and closing below this level is suggesting strong chances of a bearish trend. Closing above this level can trigger buying until 1.3120 today.
All the best!

Categories
Forex Market Analysis

NZD/USD long – attractive risk-reward ratio potential.

NZD/USD



The bigger picture on NZD/USD is very clear from the Elliott wave perspective. We see nice unfold of 5 waves down, starting from February 2018. The final move could be labelled as an ending diagonal pattern, which showing us a squeezing of the price action, and bear forces weakening, which should be followed by the strong sharp move up or pullback in at least 3 legs up, usually a zig-zag A-B-C pattern. Also, this trade could give us a very attractive risk-reward ratio potential.

 

DXY



As you can see on the chart, currently we are tracking the A-B-C zig-zag pullback pattern. We have two option, depending on how patient we are. The first one is to buy here with the target above the previous high 95.75 or to wait for this b wave of the A-B-C pattern to be finished in the 50-61% Fibo retracement area, and then to sell DXY with higher profit potential.

 

USD/CAD



As we expected the pair retraced and currently testing the previous resistance, now support level, which stands around 50% Fibonacci retracement. This is our sweet spot to start buying and building gradually our long position. Sooner or later we will see some sharp moves higher above the previous higher high 1,3226. because this leg should be labeled as a wave 3, which is usually the longest and the strongest.

 

AUD/USD



The bigger picture on Aussie is clear, the current price action is labelled as a wave 5, the final Elliott wave. On a smaller picture, the situation is a bit tricky, since we do not have yet any confirmation of when and where the pullback will start. So, for now, we should stay in a wait and see mode. We know for sure that the wave 5 must overcome the wave 4, so on a bigger picture we do expect Aussie weakening, but current market does not give us yet the good risk-reward trading opportunity.

Categories
Forex Market Analysis

Daily Market Update: Trade War Still on Fire

 


 News Commentary


 

“The United States is insisting that all countries that have placed artificial Trade Barriers and Tariffs on goods going into their country, remove those Barriers & Tariffs or be met with more than Reciprocity by the U.S.A. Trade must be fair and no longer a one-way street”.

With this tweet, Trump started the markets by denting investor risk appetites and drove down the U.S. yields.

 

The Yen and Swiss Franc were the highest gainers in the Asian session.

 


Chart Analysis


 

USD INDEX

As we expected on the daily chart, the price had reached the key resistance at 95.5 and bounced back from it, powered by divergence on RSI & the B wave (Elliot waves).

So, the index is supposed to get back down again to the support zone of 93.2-92.6, then start its journey to the C wave.


 

USD/JPY

On the daily chart, as we expected, the pair had broken the ascending channel followed by bouncing from the descending trend from the high of 2017 and the key resistance of 111.1.

The price also broke the support of 110.05 to reach the next support 108.15, to then get back up again from this level to retest the level at 110.05.

As you can see on the chart, the price is moving according to Elliot waves. By forming the A & B waves, we are waiting for the next move down to hit the C level which is located at the support of 106 and also to meet the ascending trend from the low of 2016.

So, a bounce has started and on its way.


 

USD/CAD

As we expected before, the price has reached the key resistance level of 1.334.

As we can see the price is located at very strong selling area according to many factors including key resistance level, 78.6% Fibonacci, the upper level of the reversal wedge, forming the Gartley harmonic pattern, and overbought in RSI.

So, any bounce there will lead the price down to the support zone at 1.309-1.299.


 

Categories
Forex Market Analysis

Daily Market Update: BoE Left Rates On Hold, Philly Fed Manufacturing Index Declined

 


 News Commentary


 

The Pound strengthened after the Bank of England left interest rates steady, but the vote for a rate hike by the bank’s chief economist came with a surprise that supported the probability for the next hike in the August meeting.

The MPC voted 6-3 to hold rates flat, but the fact that there were three dissenting votes cast in favour of a rate hike today was a bit more hawkish than what was expected

 

Tensions between the U.S. and China continue, as the two largest economies in the world faced a tit-for-tat over trade tariffs. Earlier this week, U.S. President Donald Trump threatened to impose tariffs on another $200 billion of Chinese goods. China could strike back at blue-chip firms including Caterpillar and Boeing who rely on China for revenue.

The dollar also eased following the release of soft U.S. manufacturing data to drop at 19.9, lower than expected 28.9

But demand for the dollar continued to be boosted after Federal Reserve Chairman Jerome Powell on Wednesday reiterated that the case for gradual rate hikes remains strong.

 

New Zealand GDP growth dropped by 0.1% compared to the previous two quarters, coming in at just 0.5%, lower than the previous reading of 0.6%

 

 


Chart Analysis


 

 

USD/JPY

On the daily chart, as we expected, the pair had broken the ascending channel followed by bouncing from the descending trend from the high of 2017 and the key resistance of 111.1.

The price also broke the support of 110.05 to reach the next support 108.15, to then get back up again from this level to retest the level at 110.05.

As you can see on the chart, the price is moving according to Elliot waves. By forming the A & B waves, we are waiting for the next move down to hit the C level which is located at the support of 106 and also to meet the ascending trend from the low of 2016.

So, a bounce has started and on its way.



 

AUD/NZD

On the daily chart, as we expected before, the price had made its way up to targets at the resistance zone 1.0815-1.0865, boosted by a BAT harmonic pattern.

The price has already made its retracement as we expected it to.

Reaching the support zone and shaping the Gartley harmonic pattern, the price is supposed to continue its bullish movement up to the 1.1045 level after forming hammer & engulfing candles respectively.



 

USD/CAD

As we expected before, the price has reached the key resistance level 1.334.

As we can see the price is located at very strong selling area according to a key resistance level, 78.6% Fibonacci, the upper level of the reversal wedge, forming the Gartley harmonic pattern, and overbought in RSI.

So, any bounce there will lead the price down to the support zone at 1.309-1.299.



 

Categories
Forex Market Analysis

Daily Market Update: Easing on Italy’s Politics, CAD Rate Statement, and Possible US Tariffs on EU

 


News Commentary


 

The Euro gained on Thursday as Italian parties renewed attempts to form a government, to calm down the concerns about the wider impact of a political crisis in Europe’s third-largest economy.

The two anti-establishment parties have made many efforts to form a coalition government, rather than force Italy into holding elections for the second time this year in September.

The CPI flash estimate enhanced the regains of the Euro after a reading of 1.9% more than the forecast, which was 1.6%, along with the core reading of 1.1% more than the forecast which was 1.0%.

Bank of Canada Governor Stephen Poloz left rates on hold for a third straight decision on Wednesday at 1.25%, but gave a hawkish statement for the economy and removed some cautious language.

The central bank also clarified that recent economic data bolsters its April outlook for a 2% growth in the first half of 2018.

All eyes will be on GDP at 12:30 GMT with the expectation of 0.2% after the last reading of 0.4%. Any higher than expected would reinforce the optimism bias.

 

Australia reported worse than expected Capex data. Private capital expenditures rose only 0.4% in the first quarter against 1.0% estimated and 0.2% from the fourth quarter of last year.

 

Negative data came from the US yesterday as ADP Non-Farm Employment Change released lower than expected figures with 178K. Along with prelim GDP which came in at 2.2%, lower than the forecast and the previous reading at 2.3%.

 

There’s some news that Washington will announce plans to put tariffs on Eurozone steel and aluminium imports, sources said.

They said the announcement was planned for Thursday morning in Washington but that the timing could still change. Commerce Secretary Wilbur Ross told the French daily newspaper, Le Figaro it would be announced either before markets opened or after they closed.

While not confirming for sure that the U.S. would decide to force tariffs, he said: “It’s up to the European Union to decide if it wants to take retaliatory measures. The next question would be: how will the U.S. President Donald Trump react? You saw his reaction when China decided to retaliate.”

 

 


Chart Analysis


 

USD/CAD

On the daily chart, as we expected the price had made its way into the resistance zone of 1.289-1.298, almost reaching the key resistance at 1.309, with an approach from the descending trend line starting from the high of 2015, and the upper edge of the horn pattern.

The price has already bounced beneath the key resistance and the resistance zone, to take the price firstly to the support level at 1.274.



 

AUD/USD

On the daily chart, the price had a false break beneath the support zone 0.75-0.7535 with a pin bar.

That enhances the AB=CD harmonic pattern, with breaking a descending channel.

The pair rose with an engulfing candle from the support zone.

Along with divergence in RSI, the price is ready for the next move up to 0.774 which is a level with a combination of the lower trend line from the high of 2018 and the broken uptrend.



 

AUD/JPY

On the daily chart, as we expected, the price reached the resistance zone at 84-84.35.

The price couldn’t break through this area to bounce back.

It reached the support levels at 81.25-80.5 (as we expected also) to pull back up again boosted by the ascending trend from the low of March.

As the pair is currently moving sideways. The price is expected to retest the resistance zone again.



 

Categories
Forex Market Analysis

Daily Market Update: US- North Korea Summit, Italian Politics, and Negotiations of NAFTA

 


News Commentary


 

 

The news has featured that the U.S.-North Korea summit is back on track. North Korea and the US are starting the preparations for the June 12 summit between Kim Jong-un and Donald Trump.

Separately, Trump contacted the Japanese prime minister, Shinzo Abe. He “affirmed the shared imperative of achieving the complete and permanent dismantlement of North Korea’s nuclear, chemical, and biological weapons and ballistic missile programs,” The White House claimed. And they would meet before the Kim-Trump summit.

Meanwhile, the U.S. 10-Year Treasury Yield fell at the beginning of the week to a six-week low at 2.89%.

Japan’s unemployment rate remained stable at 2.5% but the jobs ratio moved lower from 1.6% to 1.59%.

 

The political situation in Italy also blocked investor’s risk appetite. Italian President Sergio Mattarella refused to accept the nomination of a euroskeptic finance minister, motivating the anti-establishment Five Star Movement and far-right League party to give up trying to form an administration.

 

Canadian Foreign Minister Chrystia will fly to Washington to continue the NAFTA negotiations on Tuesday and Wednesday. “we’ve said all along we are ready to go (to Washington) at any time.” Said her spokesman Adam Austen.

 

 


Chart Analysis


 

AUD/USD

On the daily chart, the price had a false break beneath the support zone 0.75-0.7535.

That enhances the AB=CD harmonic pattern, with breaking a descending channel.

The pair had risen with an engulfing candle and pulled back with a hammer, one touching the support zone again.

Along with divergence in RSI, the price is ready for the next move up to 0.774 which is a level with a combination of the lower trend line from the high of 2018 & the broken uptrend.



 

USD/JPY

The price has reversed from a very strong short-selling area, rebounding from the key resistance level at 111.1 and the lower trend line from the high of 2015, also reversing from the top edge of the upward channel along with forming an AB=CD harmonic pattern with overbought on RSI.

The price has broken the key support level 110.05 along with the ascending channel.

So, the price is supposed to revisit the support level at 108.15.



 

AUD/JPY

On the daily chart, as we expected, the price reached the resistance zone at 84-84.35 affected by shaping a head & shoulders reversal pattern.

The price couldn’t break through this area to bounce back.

It could reach the support levels at 81.25-80.5 to pull back up again, as the pair is currently moving sideways.



 

 

USD/CAD

On the daily chart, the price had made its way into the resistance zone of 1.289-1.298, also reaching near the key resistance at 1.309.

With an approach from the descending trend line starting from the high of 2015 and the upper edge of the horn pattern.

If the daily candle closes beneath this zone again with suitable price action, it will prompt the price to be bearish to the support zone 1.2525-1.2415.



 

 

Categories
Forex Market Analysis

Daily Market Update: Cancellation of the US-North Korea Summit, GB Second Estimate GDP

 


News Commentary


The market reacted to the news that U.S. President Donald Trump decided to cancel a planned summit with North Korean leader Kim Jong Un.

“I have decided to terminate the planned Summit in Singapore on June 12th. While many things can happen and a great opportunity lies ahead potentially, I believe that this is a tremendous setback for North Korea and indeed a setback for the world…”. Trump noted.

This came with The U.S. Commerce Department decision that it would apply a national security investigation into car and truck imports, a move that could lead to tariffs like those on steel and aluminium in March. This made traders nervous which was obvious on the markets, to avoid risk they relied on safe havens.

In Great Britain, there’s a second estimate on GDP at 8:30 GMT. The forecast is 0.1%. Any disappointing reading would pressure the Pound down deeper.


Chart Analysis


 

USD/CAD

On the daily chart, the price had made its way into the resistance zone of 1.289-1.298.

With an approach from the descending trend line starting from the high of 2015.

If the daily candle closes beneath this zone again, it will prompt the price to be bearish to the support zone 1.2525-1.2415.


AUD/USD

On the daily chart, the price had a false break beneath the support zone 0.75-0.7535.

That enhances the harmonic pattern AB=CD, with breaking a descending channel.

The pair had risen with an engulfing candle and pulled back with a hammer, one touching the support zone again.

Along with divergence in RSI, the price is ready for the next move up to 0.774 which is a level with a combination of the lower trend line from the high of 2018 & the broken uptrend.