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Pushing to Lower Levels or Correction Ahead?

CAD, USD / CAD, CAD / JPY Analysis and discussion points

  • USD/ CAD CAD stands still Oil Price strength
  • USD / CAD Cheap vs. Exchange Rates

USDCAD: There are growing signs that the Canadian dollar is starting to seem overcooked. From Friday oil prices have risen by more than 6%, while CAD has failed to rise. Since the BoC hawkish cone, CAD strength has been the dominant trade, but if the pair falls nearly 5%, it would be natural to see positioning relax. As I emphasized in the document weekly COT report, CAD is the G10 ‘s biggest bull contribution, which increases the risk of correction if you should risk shifting your mood. In addition, USD / CAD trades quite cheaply compared to US / CA exchange rate differences, which has also moved more in favor of the greenback.

Momentum studies (RSI) have risen higher, moving out of the oversupply of the daily chart, revealing a slight bullish divergence, usually from a change in signal direction. Nevertheless, there has been little interest in raising the USD / CAD higher, with 1.2140-45 limiting all rallies. The back has support 1.2020-25 and 1.2000.

USD / CAD chart: daily schedule

Canadian Dollar Forecast: Is It Lowering or A Correction Ahead?

Source: Refinitive

Difference in US / CA rates vs USD / CAD

Canadian Dollar Forecast: Is It Lowering or A Correction Ahead?

Source: Refinitive

A useful guide to support and resistance trading

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