Market Analytics and Technical Considerations
Key Points
- The USD/CAD currency pair is falling towards 1.3400 as oil prices are hardly recovering.
- After China announced economic stimulus measures to counteract the volatility sparked by Covid, the risk-off urge has subsided.
- The US/Canada GDP statistics will be closely scrutinized in addition to Fed Powell’s address.
After a massive sell-off, the USD/CAD pair is looking for an immediate cushion after failing to sustain above the crucial hurdle of 1.3500.In the face of a vertical rise in oil prices, the loonie asset is currently trading around 1.3433 and is expected to continue losing money until it reaches round-level support at 1.3400.
Additionally, the Canadian dollar is anticipated to strengthen further as the risk-appetite theme recovers.
In the meantime, a decline in the popularity of safe havens has caused the US Dollar Index (DXY) to retest its day’s low of 106.14.In contrast, investors’ trepidation ahead of Jerome Powell’s speech has caused 10-year US Treasury yields to rebound to close to 3.71 percent.
Investors are anticipating the release of GDP (gross domestic product) data for the fourth quarter on Wednesday in the United States .It is anticipated that the growth rate will remain at 2.6%.Policymakers at the Federal Reserve (Fed) are anticipating a slowdown in growth, which will result in a slowdown in inflation.
Investors in the loonie are also looking forward to Tuesday’s GDP numbers. It is anticipated that the annualized GDP will rise to 3.5%, up from 3.3% in the previous release. In contrast to the previous release of 0.8%, quarterly economic data could decrease to 0.4%.
Oil prices have skyrocketed in response to expectations that the OPEC cartel might consider cutting supply to make up for the recent weakness. As a result of Chinese marshals enforcing home barricades, public unrest in China has subsided for some time. However, the problem has not been completely resolved.
It is important to note that Canada is the leading exporter of oil to the United States; consequently, a significant rise in oil prices will benefit the Canadian dollar.
Key Technical Levels
USD/CAD
|
OVERVIEW |
|
|
Today last price |
1.3431 |
|
Today Daily Change |
-0.0072 |
|
Today Daily Change % |
-0.53 |
|
Today daily open |
1.3503 |
|
TRENDS |
|
|
Daily SMA20 |
1.3432 |
|
Daily SMA50 |
1.3574 |
|
Daily SMA100 |
1.3276 |
|
Daily SMA200 |
1.3015 |
|
LEVELS |
|
|
Previous Daily High |
1.3505 |
|
Previous Daily Low |
1.3381 |
|
Previous Weekly High |
1.3495 |
|
Previous Weekly Low |
1.3316 |
|
Previous Monthly High |
1.3978 |
|
Previous Monthly Low |
1.3496 |
|
Daily Fibonacci 38.2% |
1.3458 |
|
Daily Fibonacci 61.8% |
1.3428 |
|
Daily Pivot Point S1 |
1.3421 |
|
Daily Pivot Point S2 |
1.334 |
|
Daily Pivot Point S3 |
1.3298 |
|
Daily Pivot Point R1 |
1.3545 |
|
Daily Pivot Point R2 |
1.3586 |
|
Daily Pivot Point R3 |
1.3668 |
Indicators- Daily
USD/CAD
|
Name |
Value |
Action |
|
RSI(14) |
49.325 |
Neutral |
|
STOCH(9,6) |
57.097 |
Buy |
|
STOCHRSI(14) |
73.843 |
Buy |
|
MACD(12,26) |
-0.004 |
Sell |
|
ADX(14) |
33.927 |
Buy |
|
Williams %R |
-26.523 |
Buy |
|
Name |
Value |
Action |
|
CCI(14) |
131.9232 |
Buy |
|
ATR(14) |
0.0084 |
Less Volatility |
|
Highs/Lows(14) |
0.0019 |
Buy |
|
Ultimate Oscillator |
44.063 |
Sell |
|
ROC |
1.335 |
Buy |
|
Bull/Bear Power(13) |
0.0099 |
Buy |
