USDCAD, H1
The Canadian Dollar, buoyed by a 4.5%-plus (over $3.00/barrel) rally in oil prices over the last day, has seen some moderate outperformance, which has taken USDCAD to a three-session low at 1.3364. The triple whammy of tensions in the Middle East and particularly the Gulf supporting Oil prices, the fact that markets are expecting the Fed to follow Draghi into Dovish overtones later today and Presidents Trump & Xi confirming they will actually meet next week have all underpinned sentiment. This is a bullish mix of developments for currencies with higher beta characteristics, such as the commodity currencies of Canada, Australia and New Zealand.
USDCAD triggered lower on the crossing EMA Strategy (H1) at 1.3392 following the large engulfing candle that breached the key 1.3400 level. It eventually ran to T2 for a net gain of 25 pips as the pair ran down to the key 200 period moving average.
USDCAD remains bearish on the Daily time frame too, having failed to hold the weak break of the 20-day moving average on Monday. Yesterday’s (June 18) big move down was a return to trend continuation move first initiated back on June 3. USDCAD has support at 1.3250 and the 200-day moving average at 1.3285 with resistance sitting at 1.3400 and 1.3450. All subject to events in the Gulf and Washington of course.
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 regains traction, recovers above 1.0700
EUR/USD regained its traction and turned positive on the day above 1.0700 in the American session. The US Dollar struggles to preserve its strength after the data from the US showed that the economy grew at a softer pace than expected in Q1.
GBP/USD returns to 1.2500 area in volatile session
GBP/USD reversed its direction and recovered to 1.2500 after falling to the 1.2450 area earlier in the day. Although markets remain risk-averse, the US Dollar struggles to find demand following the disappointing GDP data.
Gold holds around $2,330 after dismal US data
Gold fell below $2,320 in the early American session as US yields shot higher after the data showed a significant increase in the US GDP price deflator in Q1. With safe-haven flows dominating the markets, however, XAU/USD reversed its direction and rose above $2,340.
XRP extends its decline, crypto experts comment on Ripple stablecoin and benefits for XRP Ledger
Ripple extends decline to $0.52 on Thursday, wipes out weekly gains. Crypto expert asks Ripple CTO how the stablecoin will benefit the XRP Ledger and native token XRP.
After the US close, it’s the Tokyo CPI
After the US close, it’s the Tokyo CPI, a reliable indicator of the national number and then the BoJ policy announcement. Tokyo CPI ex food and energy in Japan was a rise to 2.90% in March from 2.50%.