USDCAD showing more weakness

A failed rebound to the upside has put the pair back into bear territory.

Downtrend 1

The US Dollar was bearish against most of its major pairs on Tuesday with the exception of the NZD and AUD. On the US economic data front, Housing Starts rose to 1,415K on month in September (1,465K expected), from a revised 1,388K in August. 

On Wednesday, the Mortgage Bankers Association's Mortgage Applications data for the week ending October 16th is expected. Finally, the Federal Reserve is anticipated to release its Beige Book.  

The Euro was bullish against all of its major pairs. In Europe, ECB current account excess increased to E19.9B in August from E17B in July.. The German Federal Statistical Office has posted PPI for September at +0.4% on month (vs -0.1% expected).

The Australian dollar was bearish against all of its major pairs. 

The forex pair with the largest move on Tuesday was the USD/CAD which fell 62 pips to 1.313. The pair failed to post a significant rebound after breaking above its 20 and 50 day moving averages. The 50-day moving average is now acting as key resistance on the decline. Look for a break of short term support at the 1.31 level and a continuation lower towards 1.30 to test September lows.. 

Source: GAIN Capital, TradingView

Happy Trading.

More from Forex

Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.

Open an Account