USD/CAD Uptrend Intact at the Start of a Potentially Quiet Holiday Week

It’s a day of dispersion in the global FX market, with European currencies rising against the greenback and commodity dollars losing ground versus the world’s reserve currency.

It’s a day of dispersion in the global FX market, with European currencies rising against the greenback and commodity dollars losing ground versus the world’s reserve currency.

The day’s only noteworthy economic release, the NAHB Housing Market Index, was a big disappointment, falling to a two-year low on its biggest one-month decline in four years on rising interest rates and worries about the impact of tariffs. While that was enough to drive the buck lower against European currencies and the yen, the commodity dollars were yet weaker on the general risk-off tone to global markets.

With the Thanksgiving holiday this Thursday, trading in the North American session is likely to be slow in the latter half of the week. Meanwhile, it should be a relatively quiet week for economic data, with only Canada’s dual release of CPI and Retail Sales likely to draw FX traders’ attention. Both measures are expected to fall for the second straight month, with the big drop in oil prices draining some momentum from the country’s recent economic momentum.

Technically speaking, USD/CAD is bouncing back off its recent bullish trend line so far this week. The pair has consistently put in higher highs and higher lows since bottoming near 1.2800 in early October, and for now, there’s no reason to fight against that trend. Looking ahead, last week’s high near 1.3260 and the July peak at 1.3290 are the next resistance levels to watch, followed by the 17-month high near 1.3385. A close below last week’s low at 1.3127 would break the near-term uptrend and flip the pair’s technical bias back to neutral for now.

Source: 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 or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.

Open an Account