EUR/CAD: 14 year average 1.4543 vs 1.4757 range

Brian Twomey Brian's Investment

As written in the weekly commentary, drivers to this week's currency markets are GBP/CAD, EUR/CAD, AUD/CAD and NZD/CAD. For GBP/CAD and EUR/CAD both correlate to USD/CAD at +96% and +97%. EUR/CAD correlates to EUR/USD at -48% which means EUR/CAD and GBP/CAD transformed as USD pairs.

Without running the data, AUD/CAD and NZD/CAD also assumes Correlations at +90% to USD/CAD.

USD/CAD remains deeply oversold along with EUR/CAD, GBP/CAD, AUD/CAD and NZD/CAD. As instructed for long GBP/CAD anywhere to target 1.7230 achieved 154 pips from Sunday's open at 1.6967. EUR/CAD from 1.4762 achieved 73 pips but failed to break higher at reported 1.4835 then reversed.

Higher for EUR/CAD must break 1.4757, 1.4798, 1.4964 and 1.4968. Most vita to EUR/CAD is 1.4964 at the 5 year average. EUR/CAD broke below 1.4757 and now trades from 1.4757 to 1.4543 then 1.4442 at the 14 and 10 year averages. USD/CAD important support in comparison is located at 1.2083, the 10 year average.

The only trade strategy for USD/CAD and Other Currency/CAD is long due to massive oversold. Any drops represent falling prices into deeper oversold.

DXY from current 91.24 trades between 90.24 and 91.57. DXY for the week traded 91.43 to 90.87. DXY break above 91.57 assists to higher USD/CAD and in turn Other Currency/ CAD.

Author

Brian Twomey

Brian's Investment

Brian Twomey is an independent trader and a prolific writer on trading, having authored over sixty articles in Technical Analysis of Stocks & Commodities and Investopedia.

EUR/USD holds firm near 1.1850 amid USD weakness

EUR/USD remains strongly bid around 1.1850 in European trading on Monday. The USD/JPY slide-led broad US Dollar weakness helps the pair build on Friday's recovery ahead of the Eurozone Sentix Investor Confidence data for February.

GBP/USD holds medium-term bullish bias above 1.3600

The GBP/USD pair trades on a softer note around 1.3605 during the early European session on Monday. Growing expectation of the Bank of England’s interest-rate cut weighs on the Pound Sterling against the Greenback.

Gold remains supported by China's buying and USD weakness as traders eye US data

Gold struggles to capitalize on its intraday move up and remains below the $5,100 mark heading into the European session amid mixed cues. Data released over the weekend showed that the People's Bank of China extended its buying spree for a 15th month in January. Moreover, dovish US Fed expectations and concerns about the central bank's independence drag the US Dollar lower for the second straight day, providing an additional boost to the non-yielding yellow metal.

Cardano steadies as whale selling caps recovery

Cardano (ADA) steadies at $0.27 at the time of writing on Monday after slipping more than 5% in the previous week. On-chain data indicate a bearish trend, with certain whales offloading ADA. However, the technical outlook suggests bearish momentum is weakening, raising the possibility of a short-term relief rebound if buying interest picks up.

Japanese PM Takaichi nabs unprecedented victory – US data eyed this week

I do not think I would be exaggerating to say that Japanese Prime Minister Sanae Takaichi’s snap general election gamble paid off over the weekend – and then some. This secured the Liberal Democratic Party (LDP) an unprecedented mandate just three months into her tenure.

Bitcoin, Ethereum and Ripple consolidate after massive sell-off

Bitcoin, Ethereum, and Ripple prices consolidated on Monday after correcting by nearly 9%, 8%, and 10% in the previous week, respectively. BTC is hovering around $70,000, while ETH and XRP are facing rejection at key levels. Traders should be cautious: despite recent stabilization, upside recovery for these top three cryptocurrencies is capped as the broader trend remains bearish.