WTI Crude pressuring the Loonie
Gary Christie October 26, 2020 8:27 PM
USD/CAD posting a strong rebound, traders watching key resistance.
The US Dollar was bullish against all of its major pairs on Monday. On the US economic data front, New Home Sales unexpectedly fell to 959K on month in September (1,025K expected), from a revised 994K in August.
On Tuesday, Durable Goods Orders for the September preliminary reading are expected to rise 0.5% on month, in line with the August final reading. Finally, the Conference Board's Consumer Confidence Index for October is expected to increase to 102.0 on month, from 101.8 in September.
The Euro was bearish against most of its major pairs with the exception of the CAD. In Europe, Germany's IFO Business Climate Index for October was released at 92.7 (vs 93.0 expected) and Expectations Index at 95.0 (vs 96.5 expected).
The Australian dollar was bearish against most of its major pairs with the exception of the CAD, CHF and EUR.
The USD/CAD gained 76 pips in Monday's trading making it the best performing major pair as equity markets slid over 2%. Despite Monday's strong rebound, the longer term trend remains bearish below key resistance at 1.3265. Key support can be seen at 1.30 and remains our downside target. The bank of Canada's rate decision is on Wednesday.
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.