Trading Forex and CFDs is risky
Read HotForex Daily Market Analysis

USDCAD down again – triggers short position

Market Analysis

USDCAD, Daily              

USDCAD is down for a third consecutive day, this time making 11-day lows under 1.2900. The pair has been hit by two things, one being Friday’s post-U.S. jobs report losses, which has eroded Fed tightening expectations, and the other being a rally in oil prices. News that Russia and Saudi Arabia had signed an agreement to set up a “working group” to think of ways to curtail crude market volatility boosted oil prices. The drop in USDCAD since Friday has breached below both the 20- and 50-day moving averages, at 1.2956 and 1.3010, respectively, which now revert as resistance markers. The pair remains without bigger-picture direction, having continued to trade in a broadly sideways manner since March. Focus this week will fall on Wednesday’s BoC policy meeting and Friday’s Canadian August employment report, which we don’t expect will upset prevailing USDCAD sentiment.

The breach and break of the 20 DMA yesterday triggered our SHORT position at 1.2930 near term Target 1 at 1.2875 and Target 2 below the recent 23.6 Fibonacci level and set at the two week ATR 1.2835. Further down support arrives at the August low 1.2770 and the June low at 1.2690.

 

Click here to access the HotForex Economic calendar.

Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. TODAY we will explaining the world of Commodities and analyzing many live charts from Oil and Gold to Coffee and Sugar.  Click HERE to register for FREE! The next webinar will start in: 

Stuart Cowell

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.