Trading Forex and CFDs is risky
Read HotForex Daily Market Analysis

CAD climbed alongside Oil price’s pick-up

Market Analysis

AUDCAD, H4

Today Markets focus mainly in Brexit and in sterling with U.K. officially handed in the divorce papers to the EU today, but while battle lines are being drawn up nothing really changes for now and as both sides still have to sort out difference over the sequence of talks and the first EU Brexit summit is still a month away talks won’t really start in earnest for a while. Elsewhere however, the dollar edged a touch higher after the stronger pending home sales outcome, taking USDJPY to 111.08 and EURUSD down a few ticks to 1.0750. Additionally, WTI crude rallied to $49.14 from $48.60 following the EIA inventory data which showed a 900k bbl rise in crude stocks.

Consequently, the Loonie continues firmed from early lows as crude oil sustained gains. It is notable to say that there was not any domestic data overnight beside EIA Inventory data earlier and an appearance by BoC Governor Poloz yesterday, saw him maintain a cautious view of recent firm economic data. He remains focused on downside risk, which in our view should keep rates steady well into next year.

Therefore, Canadian dollar climbed alongside a pick-up in oil prices, with AUDCAD currently trading near higher to 1.0250 area. The pair presents an upward trend since the beginning of the week. The 4-hour chart is showing bullish signs with RSI at 62 sloping up while the MACD has crossed the 0 line. The price is trading in the upper Bollinger band and above 50.0 Fibonacci level, which suggest that upward momentum will continue.  In the Daily chart, 30 day EMA provides support at 1.017.

Click here to access the HotForex Economic calendar.

Want to learn to trade and analyse the markets? Join our latest webinar and get analysis and trading ideas combined with better understanding on how markets work.

Click HERE to register the next webinar will start in:

Andria Pichidi

Market Analyst

HotForex

Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.