The Dollar has held net steady versus the Euro and Yen, paring intraday losses in the case against the latter, while AUDCAD dropped quite sharply amid the juxtaposition of record lows in Australian sovereign debt yields and a Loonie-supporting 2.5%-plus rally in oil prices.

AUDCAD was showing over a 0.6% loss heading into the New York interbank open, earlier printing a 5-week low at $91.86. The Aussie buck was dented by the yield on 3-year Australian sovereign debt dropping below 1% for the first time ever, while hopes that the US and China will resolve their differences have been fading, which is a big concern for the Aussie. The lack of a planned senior-level meeting between US and Chinese officials ahead of the G20 summit in Japan is starting to cause investors consternation, boding ill for there being any meaningful progress at the summit itself.

The Loonie meanwhile, benefited as crude prices rallied, with the USOIL almost completely reversing yesterday’s dive in posting a high at $53.10, up nearly 4.5% from yesterday’s low at $50.72. News that two oil tankers have been damaged following a suspected attack in the Gulf of Oman drove crude higher. Despite the unexpected jump of oil, the asset remains in an overall bearish outlook since end of April. Hence only a break of $57-57.50 area could rise hopes for strengthening of the positive bias.

Turning back to AUDCAD, the strength of Loonie and the weakness of Aussie, drift the pair at 6-month low, while it is in the third consecutive month of downwards move. The overall bearish outlook of AUDCAD looks to hold strongly,  as the daily , weekly and month lower Bollinger Bands patterns extended southwards and momentum indicators are negatively configured.

AUDCAD

 

Hence as the technical support the continuation of further collapse, the October 2018 low now looks even more possible than before. The move is well on course for a retest of the 0.9170 immediate Support level  (October-December 2018 low ), while given the strength of the negative momentum run (bearish cross in MACD and RSI at 30), the 0.9100-0.9120 Support area which is nearly 9 year’s low, seems to have been already opened.

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.

Analysis feed

Latest Forex Analysis

Editors’ Picks

EUR/USD struggles below 1.1100 amid stimulus concerns

EUR/USD remains on the back foot below 1.1100 as investors fear that Germany's potential stimulus package will be insufficient. Tension is mounting toward Powell's critical speech on Friday.

EUR/USD News

GBP/USD struggles with 1.2100 amid growing Brexit uncertainty

GBP/USD is trading close to 1.2100, down. UK PM Johnson's request to abandon the Irish backstop in the Brexit accord was rebuffed by the EU ahead of top-level meetings.

GBP/USD News

USD/JPY retraces from 3-day top as risk-on takes a breather

The Asian traders look for further details to extend the USD/JPY pair’s previous run-up as a pullback emerges on the chart around 106.60 heading into Tuesday’s European session.

USD/JPY News

Top 3 Price Prediction Bitcoin, Ripple, Ethereum: Planning the next bullish move after consolidating gains

Trading cryptos is not a one-way street – meteoric unstoppable gains belong to the past. Nevertheless, the bullish sentiment seems to prevail. Digital coins advanced on Monday and are consolidating on Tuesday. 

Read more

Gold: Bearish outside bar reversal favors drop to $1,480

Gold closed well below $1,504 on Monday, validating the bearish outside bar candlestick pattern created on Friday. A bearish outside bar candle occurs when the price action for a specific day falls outside the high and low of the preceding day.

Gold News

Majors

Cryptocurrencies

Signatures