USDCAD remains pressured
Gary Christie August 31, 2020 9:36 PM
The ADX indicator remains in bearish trend mode.
The US Dollar was bearish against most of its major pairs on Monday with the exception of the NZD and JPY. On the US economic data front, no major economic data was released.
On Tuesday, Markit's US Manufacturing Purchasing Managers' Index for the August final reading is expected to remain at 53.6 on month, in line with the August preliminary reading. Finally, Construction Spending for July is expected to increase 1.0% on month, from -0.7% in June.
The Euro was bullish against most of its major pairs with the exception of the CAD. In Europe, German CPI was down by 0.1% in August in first reading after a 0.5% decline a month earlier. They were anticipated to be flat.
The Australian dollar was bullish against most of its major pairs with the exception of the CAD.
Looking at actives today, the USD/CAD remains under pressure after falling 48 pips to 1.3051. We have updated our targets. On a daily chart. the bearish trend remains in play as the price action remains inside a bearish channel. The pair remains capped by its 20-day moving average (in blue). The DMI (Directional Movement Index) is also confirming a bearish trend in play as the ADX line is above the -DI line and reading a 39 level. Look for a continuation lower to test Jan lows near $1.2955 unless the pair can make a reversal above the 20-day moving average near 1.3215.
Source: GAIN Capital, TradingView
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 Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.