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USD/CAD Upside Stretched in Short-Term


USDCAD Worth Evaluation and Information

  • USD Breaking Out as US Information Goes From Energy to Energy
  • Oil and Charges Suggests USD/CAD is Buying and selling at Wealthy Ranges
  • FX Momentum Stretched

USD Breaking Out as US Information Goes From Energy to Energy

All eyes on the US Greenback after breaking out to a recent YTD excessive. US knowledge is coming in a lot firmer than anticipated, in mild of the latest NFP report and this week’s hotter than scorching CPI figures. In flip, on condition that the Federal Reserve has added flexibility to its QE taper, sturdy knowledge is more likely to increase dangers that the Fed may taper sooner than initially anticipated. That mentioned, the good points within the dollar have been broad primarily based, with recent YTD lows within the Euro and Sterling, whereas commodity FX check psychological ranges.

Oil and Charges Suggests USD/CAD is Buying and selling at Wealthy Ranges

Taking a better have a look at the worth motion in USD/CAD, it could appear that the transfer has largely been exacerbated by a squeeze on positioning and thus the ache commerce could be for a continued transfer increased within the pair. The transfer nonetheless, does go towards correlated markets, with oil costs and US/CA bond spreads signalling that USD/CAD is buying and selling at wealthy ranges. In flip, I’m anticipating a short-term pullback, ought to equities and oil costs stay secure.

USD/CAD (Inverted) vs Brent Crude Oil

Canadian Dollar Forecast: USD/CAD Upside Stretched in Short-Term

Supply: Refinitiv

FX Momentum Stretched

What’s extra, judging by my FX momentum rating, promoting within the Canadian Greenback is wanting stretched and thus I’d warning towards chasing CAD decrease. As a substitute, I’m searching for a pullback into 1.2540 the place the 50 and 100DMA resides. On the topside nonetheless, resistance is located at 1.2650.

Canadian Dollar Forecast: USD/CAD Upside Stretched in Short-Term

Supply: DailyFX, Refinitiv

Canadian Dollar Forecast: USD/CAD Upside Stretched in Short-Term



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