USD/CAD bulls still in play; need to crawl above 1.3340

Christina Parthenidou XM

In the fifth consecutive week of having risen , USDCAD managed to close slightly above the 200-day simple moving average (SMA) and the Ichimoku cloud, increasing the likelihood for an up-trending market. The bullish cross between the 20- and the 50-day SMA is also a positive trend signal.

In terms of momentum, the rising MACD accompanied with the improving Tenkan-sen and the softening RSI suggest a bullish-to-neutral session for the short-term. Yet to stage another rally, the bulls should overcome the 1.3340 barrier that kept upside movements under control this month. Beyond that, resistance could appear within the 1.3400-1.3450 congested area, a break of which would shift the spotlight towards May’s peak of 1.3563.

Should the price pull back into the cloud, the 20-day SMA currently near 1.3200 could come first into view. Moving lower and under the 50-day SMA, support could be next found around the 1.3143 obstacle, while in case of a deeper decline below the February low of 1.3067, the bearish wave may continue until the 1.3000 mark.

Regarding the medium-term picture, the market holds in a downward move since early May and only a climb above 1.3400 would officially resume a neutral profile. However, with the 50-day SMA showing no sign of correcting its bearish cross with the 200-day SMA, the odds for an outlook reversal currently appear minimal.

In brief, USDCAD holds a bullish-to-neutral bias in the short-term, while in the medium-term the outlook remains negative.

Author

Christina Parthenidou

Christina joined the XM investment research department in May 2017. She holds a master degree in Economics and Business from the Erasmus University Rotterdam with a specialization in International economics.

EUR/USD flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.