SUMMARY: Buy Now
Moving Average: Buy
Technical Indicators: Buy
Fundamentals USD/CAD: Buy/Neutral
USDCAD Live Chart
Technical Review by PAXFOREX
USDCAD traded in a consolidative manner during the European morning Friday after it hit resistance at 1.3260 (R1) and the prior upside support line taken from the low of the 7th of September.
The price above 200 MA, indicating a growing trend.
The MACD histogram is above the zero line.
The oscillator Force Index is above the zero line.
If the level of resistance is broken, you should follow recommendations below:
• Timeframe: H4
• Recommendation: Long Position
• Entry Level: Long Position 1.3500
• Take Profit Level: 1.3600 (100 pips)
If the price rebound from resistance level, you should follow recommendations below:
• Timeframe: H4
• Recommendation: Short Position
• Entry Level: Short Position 1.3450
• Take Profit Level: 1.3400 (50 pips)
Factors Influencing the USDCAD
- Interest rate and capital inflow. (both U.S and Canada)
- Monetary policy (both U.S and Canada)
- Price inflation (both U.S and Canada)
- Retail sales (both U.S and Canada)
- Confidence and sentiment (both U.S and Canada)
- Economic growth (GDP) (both U.S and Canada)
- Oil prices. Oil has a negative correlation with USDCAD. When oil goes up, USDCAD goes down. When oil goes down, USDCAD goes up.
- U.S. manufacturers demand. When manufacturers demand is high can lead to higher oil prices, which might lead to a fall in USDCAD. Lower U.S manufactoring demand might have negative impact in CAD.
The USDCAD Negative Correlation:
The USDCAD tends to have a negative correlation with the following currency pairs: