USDCAD, Monthly
Looking at the longer term USDCAD chart (monthly) it is clear that prices have been in a very aggressive bull market for the last few years. The question going forward for traders is: when will this trend stop?
For the moment, the CAD continues to track the current oil price decline and since it is still unknown as to when the Oil sell-off will halt it’s decline, I’m not going to bet against the upward momentum of the USDCAD until clearer signs of a price reversal pop up.
Technically, USDCAD bullish momentum remains in overextended territory, in theory prices can remain overextended for very long periods, so I will discount the Stochastic for my monthly chart analysis and resort to the Fibonacci levels for price targets. The Fibo extension levels from March 2009 highs (1.3060) to the July 2011 low (0.94) price suggest that the current bullish momentum could take the USDCAD towards the 1.5280 (161.8% Fibo).
Disclaimer: Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of purchase or sale of any financial instrument.
Recommended Content
Editors’ Picks
EUR/USD edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.