Trading Forex and CFDs is risky
Read HotForex Daily Market Analysis

Loonie has nudged above 1.2800

Market Analysis

USDCAD, Daily

Yesterday, USDCAD has nudged above 1.2800, drawing in on the 1.2824 three-week high that was seen last week. BoC policymaker guidance over the last month that the central bank is in now rush to continue with its gradual tightening cycle has taken the wind out of the sails of the Canadian dollar. IT is expected that the next BoC rate hike will be in March, while the Fed is on track to tighten next month.

Today, USDCAD is traded above yesterday’s closing, by breaking the recent resistance at 1.2825, while significant is the fact that rejected the 20-Day MA and 38.2 % Fibonacci level. The Fibonacci retracement was set since May’s peak at 1.3790. This northwards move complies with the price action seen the last 7 consecutive days, but also with the weekly time frame seen since late August. Hence with Daily RSI positively configured at 62 and Stochastic above neutral area, sloping positively at 60, a Long position was taken with entry at 1.2829. Targets have been set at below 50.0 Fibonacci at 1.2894. Target 2  is at 200 Day MA at 1.2978 and will be triggered once USDCAD breaks the 50.0 Fibonacci area, at  1.2930, which consider be a strong Resistance level. Support has been set between 1.2720-1.2740 area.

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. Click HERE to register for FREE! The next webinar will start in:

Andria Pichidi

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.

Risk Warning: Trading leveraged products such as Forex and CFDs may not be suitable for all investors as they carry a high degree of risk to your capital. Please read the full Risk Disclosure.

Risk Warning: Remember Forex and CFDs are leveraged products and can result in the loss of all invested capital. Please consider our Risk Disclosure.