spot_img
Monday, August 8, 2022
Home88 NewsCanadian Dollar Technical Forecast: USD/CAD, EUR/CAD, NZD/CAD Levels to Watch This Week...

Canadian Dollar Technical Forecast: USD/CAD, EUR/CAD, NZD/CAD Levels to Watch This Week – DailyFX

-

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.
Note: Low and High figures are for the trading day.
Note: Low and High figures are for the trading day.
Note: Low and High figures are for the trading day.
Note: Low and High figures are for the trading day.
Note: Low and High figures are for the trading day.
Note: Low and High figures are for the trading day.
The Canadian Dollar got off to a positive start against the US Dollar since October began, with USD/CAD down nearly a full percentage point. The Loonie’s strength comes after five months of losses versus the Greenback. However, a Falling Wedge pattern has taken shape, which puts a bullish bias on the currency pair.
USD/CAD traded against the lower bound of its wedge pattern on Friday, putting a breakdown below support on the cards. If that does occur, prices won’t have far to drop before running into potential support. The high-profile 200-day Simple Moving Average is trending near 1.2512 – just below the current levels. On the other hand, and perhaps more likely, prices may bounce from support and move higher to test wedge resistance.
Chart created with TradingView
The Canadian Dollar has made more progress versus the Euro, with EUR/CAD’s current monthly loss approaching 1.25% on Friday. That would add to CAD’s prior month gains versus the Euro. Price began to fall sharply in late September. The bearish price action in the currency pair has created a downward channel, which has contained price action over the last few weeks.
Given the current trend, it’s fair to assume that the Canadian Dollar will continue its current course against the Euro. That said, EUR/CAD’s outlook is skewed to the bearish side. Moreover, the recent crossover between the 20-day and 50-day Simple Moving Averages (SMAs) highlights the current strength in bearish momentum.
Chart created with TradingView
The Canadian Dollar outperformed the risk-sensitive New Zealand Dollar in September. That brought NZD/CAD to a support level that has held firm several times since mid-July. Prices quickly breached that level on an intraday basis last week, although quickly leveled off above the support level. Still, NZD/CAD is down nearly half a percent on the month.
The currency pair is unlikely to see an extended selloff from these levels however, conspiring the strong technical support. A drop lower would treated the June swing low, which is the 2021 low at 0.8599. If prices continue to rebound from here, the falling 9-day Exponential Moving Average (EMA) could pressure prices. RSI is bouncing from the 30 oversold level.
Chart created with TradingView
— Written by Thomas Westwater, Analyst for DailyFX.com
To contact Thomas, use the comments section below or @FxWestwateron Twitter
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
DISCLOSURES
Leveraged trading in foreign currency or off-exchange products on margin carries significant risk and may not be suitable for all investors. We advise you to carefully consider whether trading is appropriate for you based on your personal circumstances. Forex trading involves risk. Losses can exceed deposits. We recommend that you seek independent advice and ensure you fully understand the risks involved before trading.

FX PUBLICATIONS IS A MEMBER OF NFA AND IS SUBJECT TO NFA’S REGULATORY OVERSIGHT AND EXAMINATIONS. HOWEVER, YOU SHOULD BE AWARE THAT NFA DOES NOT HAVE REGULATORY OVERSIGHT AUTHORITY OVER UNDERLYING OR SPOT VIRTUAL CURRENCY PRODUCTS OR TRANSACTIONS OR VIRTUAL CURRENCY EXCHANGES, CUSTODIANS OR MARKETS.

FX Publications Inc (dba DailyFX) is registered with the Commodities Futures Trading Commission as a Guaranteed Introducing Broker and is a member of the National Futures Association (ID# 0517400). Registered Address: 32 Old Slip, Suite 803; New York, NY 10005. FX Publications Inc is a subsidiary of IG US Holdings, Inc (a company registered in Delaware under number 4456365)
Sign up now to get the information you need!
Receive the best-curated content by our editors for the week ahead.
By pressing ‘Subscribe’ you consent to receive newsletters which may contain promotional content.
For more info on how we might use your data, see our privacy notice and access policy and privacy website.
Thank you for subscribing!
Check your email for further instructions.
Questions or Comments?

source

Related articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Stay Connected

0FansLike
0FollowersFollow
3,429FollowersFollow
19,900SubscribersSubscribe
spot_img

Latest posts