Forex Currency Trading | USDCAD Analysis

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USDCAD Possible Short | Forex Analysis

As oil recovery gained momentum, the USDCAD pair failed to build on to its early rebound from 1.2900 level and reversed from 1.2945 region to currently trade around 1.2920 level. On Thursday, the pair witnessed a volatile session, trimming majority of its sharp up-move to 1.3100 neighborhood to finally settle below 1.3000 psychological mark. Earlier on Thursday, the US Dollar continued strengthening as surprisingly strong Philly Fed Manufacturing index negated weak inflation and higher-than-expected weekly jobless claims data. On Friday, broad US Dollar weakness accompanied by rebounding oil prices is seen extending support to the Canadian Dollar, dragging the USDCAD pair lower (Forex Currency Trading).

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USDCAD Idea | Forex Currency Trading

Currently, the USDCAD pair trades -0.21% lower at 0.2938, extending recovery from daily lows struck at 1.2899 in early trading. The USDCAD pair halted its retreat from nine-day highs and embarked upon a minor-recovery mode heading into Europe, as the US dollar picked-up bids and trims losses against its major peers. The USD index now drops -0.19% t0 94.58, moving off 94.47 lows (Forex Currency Trading).

USDCAD Idea | Forex Currency Trading

USDCAD One More Leg Up | Daily Forex

The USDCAD pair surged more than 1% during last week and kept gains, followed by the aggressive rally that dollar had during yesterday’s session. After 4 consecutive positive days, the pair started the day with a negative candle creating a strong pullback, falling more than 185 pips. On the 4-hour chart, it is very significant that the pair is trading between the 100-SMA and the 200-SMA with the tendency to continue its upward potential move. A break above the 200-SMA and the Fibonacci retracement level 61.8% (high June 2 until low June 8) should then challenge the next barrier at 1.3085, which tested yesterday. Alternatively, a break below yesterday’s low, 1.2900, could open the way towards the next support zone at 1.2750 – 1.2570, which includes the 50-SMA on the 4-hour chart. In the same chart, the technical indicators seem to be in a positive territory with the RSI indicator sloping upwards. The MACD oscillator crossed downwards its trigger line but is still above zero.

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USDCAD In A Megabearflag | Forex Reviews

Weakness below 1.2900 round figure mark is likely to get extended towards 1.2850-45 horizontal support, which if broken is likely to expose 1.2800 handle ahead of 1.2765-60 support area. On the flip side, recovery momentum above 1.2960-70 is likely to assist the pair to surpass 1.3000 psychological mark and head towards 1.3030 resistance area. Any further up-move beyond 1.3030 resistance might continue to confront strong resistance around 1.3100 region.

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USDCAD 4H Short Long | Trading Forex

The Canadian dollar or “loonie,” is a gold-colored one-dollar coin introduced in 1987 which bears images of a common loon, a bird which is quite common in Canada. The coin entered circulation on June 30, 1987, as 40 million coins were introduced into major cities across the country. Two years after the loonie’s introduction, the Bank of Canada totally ceased production of the dollar banknote. The final dollar bills were printed on June 30, 1989. The loonie has become the national symbol of the Canadian dollar and has become synonymous with the Canadian dollar itself. The financial media refer mostly to the loonie when discussing its rate against other currencies (Forex Currency Trading).

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The US Dollar v/s the Canadian Dollar is a popular currency pair due to the large amount of cross-border trading activity that takes place between The United States and Canada. The Canadian Dollar is often called ‘The Loonie’ because of the picture depicting a loon on the Canadian $1 coin. The Canadian Dollar is often considered a ‘Commodity Currency’ due to the large deposits of natural resources, especially Oil that is mined and exported from Canada; particularly with their neighbor to the south.

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