|Day's range||1.276 - 1.276|
|52-week range||1.2062 - 1.3792|
The US dollar fell as low as the 1.25 region during the week but bounced enough to show signs of life. On Friday, we guide a very negative outcome when it comes to the CPI numbers coming out of Canada, so this only exacerbated the upward momentum.
The US dollar has initially pulled back during the trading session on Friday, reaching down towards the 1.2625 level, but finding enough bullish pressure turn around and go much higher, reaching towards the vital 1.2750 level.
The US dollar pulls back a bit during the Thursday session initially, but also turns around find a bit of support at the 1.26 region. I think at this point it comes down to oil, and what it does next. The oil markets have been very bullish, so that would perhaps pray tell a move lower in this pair, but it looks like were trying to see some type of fight.
Given the USDJPY’s sustained trading above fortnight-old ascending trend-line, the pair is likely to challenge the 107.85-90 horizontal-resistance, which if broken could escalate its recovery towards 108.45 and the 108.90 north-side numbers. If prices keep rising after 108.90, the 109.30 and the 109.80 can offer intermediate halts during its rally to 110.50. In case of the pullback, the 107.15 may become nearby rest for the pair ahead of highlighting the 106.90 TL, breaking which 106.60 & 106.10 shouldn’t be missed if holding short positions. Moreover, the 105.60 and the 105. ...
The US dollar initially tried to rally against the Canadian dollar during the session on Wednesday but found the 1.26 level to be a bit too resistive.
The Canadian dollar fell against its U.S. counterpart on Wednesday, as the Bank of Canada left interest rates unchanged at 1.25%, in line with expectations. In its statement, the BOC noted that Canada's consumer price inflation is close to the 2% target, with factors that previously weighed on the measure having largely dissipated. Rate hikes over time remained feasible, the BOC said, though key data points needed to be watched closely.
The US dollar went sideways against the Canadian dollar during trading on Tuesday, as it looks for clarity. I still think that we have more selling pressure than buying pressure, but we may need to build up some type of momentum.
This week should be important for the CAD. We do have an interest rate decision, statement, the CPI, and the Retail Sales data. Ahead of those events, CAD is very strong. USDCAD is going down for the past few weeks and it looks like this movement will continue. Currently, the price is creating the rectangle pattern, which promotes a breakout of its lower line and a further drop.
A dovish RBA and weak economic data out of China weighed through the Asian session, with the day ahead a busy one on the economic calendar, bringing the Pound, the EUR and the Dollar into focus.
During the Monday session, the US dollar did very little against the Canadian dollar, as we continue to go sideways in general. The last couple of sessions have all been reasonably quiet and range bound, and I think that is the market trying to decide whether the 1.26 level will offer enough interest for the market to bounce.
The US dollar tried to rally initially against the Canadian dollar during the week but found the area above the 1.2750 level to be far too resistive to continue going higher. We broke down a bit, and it now looks as if we are going to test the 1.25 level, and perhaps an uptrend line that sits just below.
The US dollar dipped initially during trading on Friday but found enough support near the 1.2550 level to bounce and cause a bit of a supportive looking base against the Loonie. However, there are a lot of things to worry about going forward.
Currency markets gobbled up the good news that a deal for the renegotiated North American Free Trade Agreement was nigh. But this euphoria is forgetting one important risk.
The US dollar continues to chop around the 1.26 level during trading on Thursday, as the market is trying to figure out which way to go next. By showing this volatility in this area, I think we are trying to “catch our collective breath” after the drop.
The US dollar fell against the Canadian dollar again during Wednesday trading, breaking down through another minor support level in the form of the 1.26 level. It now looks as if we are destined to continue to go lower, especially if the oil can continue to rally due to the “risk on” attitude traders suddenly have.
Even a hawkish set of FOMC meeting minutes and a jump in baseline inflation failed to spur the Dollar into action, with geopolitical tension on the rise as Trump looks set to launch missiles on Syria.