Advertisement
New Zealand markets closed
  • NZX 50

    12,105.29
    +94.63 (+0.79%)
     
  • NZD/USD

    0.5972
    -0.0003 (-0.05%)
     
  • NZD/EUR

    0.5536
    +0.0003 (+0.05%)
     
  • ALL ORDS

    8,153.70
    +80.10 (+0.99%)
     
  • ASX 200

    7,896.90
    +77.30 (+0.99%)
     
  • OIL

    83.11
    -0.06 (-0.07%)
     
  • GOLD

    2,254.80
    +16.40 (+0.73%)
     
  • NASDAQ

    18,254.69
    -26.15 (-0.14%)
     
  • FTSE

    7,952.62
    +20.64 (+0.26%)
     
  • Dow Jones

    39,807.37
    +47.29 (+0.12%)
     
  • DAX

    18,492.49
    +15.40 (+0.08%)
     
  • Hang Seng

    16,541.42
    +148.58 (+0.91%)
     
  • NIKKEI 225

    40,463.25
    +295.18 (+0.73%)
     
  • NZD/JPY

    90.3900
    -0.0030 (-0.00%)
     

USD/CAD at Risk for Breakout as Traders Dismiss BoC Rate Decision

DailyFX.com -

Talking Points:

- USD/CAD Wedge/Triangle Formation at Risk as BoC Retains Wait-and-See Approach.

- AUD/USD Support in Focus Ahead of RBA Interest Rate Decision.

- USDOLLAR Continues to Clear Near-Term Targets & Carves Bullish Formation.

For more updates, sign up for David's e-mail distribution list.

USD/CAD

USD/CAD Daily Chart
USD/CAD Daily Chart

Chart - Created Using FXCM Marketscope 2.0

  • USD/CAD may ultimately break out of the wedge/triangle formation from March & resume the long-term upward trend as the Bank of Canada (BoC) endorse a highly neutral tone for monetary policy.

  • With Canada’s 1Q Gross Domestic Product (GDP) anticipated to show a marked slowdown in economic activity, a dismal print may instill a more bullish outlook for USD/CAD.

  • DailyFX Speculative Sentiment Index (SSI) shows retail crowd remains net-short USD/CAD since May 22, with the ratio currently holding at -1.61.

ADVERTISEMENT

AUD/USD

AUD/USD Daily Chart
AUD/USD Daily Chart
  • AUD/USD faces a growing risk of giving back the rebound from April as the bullish formations falter, while the downward trending channel continues to take shape.

  • The Reserve Bank of Australia’s (RBA) June 2 interest rate decision may instill a more bearish outlook for AUD/USD should the central bank see scope for another rate cut, while Governor Glenn Stevens continues to jawbone the higher-yielding currency.

  • Need a break/close below key support around 0.7570 (50% expansion) to 0.7590 (100% expansion) to favor fresh 2015 lows in AUD/USD.

Join DailyFX on Demand for Real-Time SSI Updates Across the Majors!

Read More:

Price & Time: Broader Trend Resuming in USD/CAD?

US Dollar Targets Fresh Highs versus Yen, Euro - Levels to Watch

USDOLLAR(Ticker: USDollar):

Index

Last

High

Low

Daily Change (%)

Daily Range (% of ATR)

DJ-FXCM Dollar Index

11984.31

11997.89

11930.27

0.21

101.55%

USD/CAD at Risk for Breakout as Traders Dismiss BoC Rate Decision
USD/CAD at Risk for Breakout as Traders Dismiss BoC Rate Decision
USDOLLAR Daily Chart
USDOLLAR Daily Chart

Chart - Created Using FXCM Marketscope 2.0

  • The near-term rally in Dow Jones-FXCM U.S. Dollar may carry into June as it clears the Fibonacci overlap around 11,951 (38.2% retracement) to 11,965 (23.6% retracement); string of higher highs & lows favors the approach to buy-dips in the greenback.

  • With San Francisco Fed President John William on the wires, will keep a close eye on the fresh comments from the 2015 Federal Open Market Committee (FOMC) voting-member as market participants greater scope for liftoff at the September 17 interest rate decision.

  • Will watch former resistance zones for new support, with the key region of interest coming in around 11,898 (50% retracement) to 11,901 (78.6% expansion).

Join DailyFX on Demand for Real-Time SSI Updates!

USD/CAD at Risk for Breakout as Traders Dismiss BoC Rate Decision
USD/CAD at Risk for Breakout as Traders Dismiss BoC Rate Decision

Click Here for the DailyFX Calendar

--- Written by David Song, Currency Analyst

To contact David, e-mail dsong@dailyfx.com. Follow me on Twitter at @DavidJSong.

To be added to David's e-mail distribution list, please follow this link.

Trade Alongsidethe DailyFX Team on DailyFX on Demand

Looking to use the DailyFX Trade Signals LIVE? Check out Mirror Trader.

New to FX? Watch this Video

Join us to discuss the outlook for the major currencies on the DailyFXForums


original source

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
Learn forex trading with a free practice account and trading charts from FXCM.