Fundamental Analysis of USD/CAD for July 12, 2018
July 12, 2018 9:22 amVideo
Latest News
- Trading Signals for BITCOIN (BTC/USD) for April 10-15, 2024: sell below $69,000 (3/8 Murray – bullish wedge) April 10, 2024
- Is there a possibility of no Fed rate cuts this year? – Special Report April 10, 2024
- Technical Analysis – Citigroup stock pulls back ahead of earnings April 10, 2024
- Trading Signals for Ethereum (ETH/USD) for April 10-15, 2024: sell below $2,364 (3/8 Murray – symmetrical triangle) April 10, 2024
- EUR/USD and GBP/USD: Technical analysis on April 10 April 10, 2024
- Technical Analysis – USDJPY flies to new 34-year high April 10, 2024
- Technical Analysis – AUDCAD rebounds strongly from uptrend line April 10, 2024
- Banks Q1 earnings: Weak results despite stock outperformance – Stock Markets April 10, 2024
- Forex forecast 04/10/2024: EUR/USD, NZD/USD, USD/CAD and Oil from Sebastian Seliga April 10, 2024
- Technical Analysis – EURCHF eases slightly after 1-year peak April 10, 2024
- GBP/USD on April 10. USD does not rely on traders’ support April 10, 2024
- Technical Analysis – Is CADJPY setting the stage for its next bull run? April 10, 2024
- Technical Analysis – Is CADJPY setting the ground for its next bull run? April 10, 2024
- Technical Analysis – USDJPY flirts with intervention zone April 10, 2024
- Market Comment – Dollar and equities trade higher in anticipation of US CPI release April 10, 2024
- Technical Analysis – EURUSD oscillates within a sideways range April 10, 2024
- Technical Analysis – Gold attempts to unlock new high April 10, 2024
- Trading plan for GBP/USD on April 10. Simple tips for beginners April 10, 2024
- Trading plan for EUR/USD on April 10. Simple tips for beginners April 10, 2024
- Congrats on Winning in the Ramadan Challenge Promo April 10, 2024
USD/CAD has been quite impulsive with the bullish gains recently after breaking above the 1.3120 area with a daily close. Despite the recent rate hike by the Bank of Canada, CAD failed to gained momentum over USD that might lead to further bullish gains.
Yesterday, the Bank of Canada’s policy statement and overnight rate report was published. The regulator increased the key policy rate to 1.50% from the 1.25% as expected. After certain volatility during the event, CAD lost momentum against USD leading to a bullish daily close above 1.3120 area. Citing BoC officials at the press conference, the central bank has been quite positive about economic growth. On the back of growing tensions due to the trade war between the US and Canada, export sales are being affected that led to a shift in trading sentiment despite the rate hike.
On the USD side, the economic reports published recently were quite positive and helped USD to sustain the bullish momentum in the process. However, the trade war might also undermine USD in the coming days. Today, US CPI and Core CPI reports are going to be published which is expected to be unchanged at 0.2%, Unemployment Claims are expected to decrease to 226k from the previous figure of 231k, and Natural Gas Storage is expected to decrease to 55B from the previous figure of 78B.
As for the current scenario, economic forecasts are quite mixed for the US reports, so such expecftations are going to inject certain volatility in trading. Though the Bank of Canada has been quite optimistic about economic prospects on the grounds of the recent economic reports, analysts expect some correction of USD/CAD. To sum up, USD is expected to gain certain momentum over CAD in the process.
Now let us look at the technical view. The price has been quite impulsive with the bullish gains yesterday that led to a daily close above 1.3120 area but today CAD is struggling for gains. As the price broke above the 1.3120 along with dynamic levels of 20 EMA, Tenkan and Kijun line the price is expected to head higher with a target towards 1.34 resistance area in the future. As the price remains above 1.3050 area, the bullish bias is expected to continue further.
NEAR TERM SUPPORT: 1.3050
NEAR TERM RESISTANCE: 1.3400
BIAS: BULLISH
CURRENT MOMENTUM: CORRECTIVE AND VOLATILE
The material has been provided by InstaForex Company – www.instaforex.com
Related Posts: