Canadian Dollar Weakness Looks Set To Continue

• 6 Feb 2018

CAD/JPY

The CAD/JPY pair has broken the 86.91 price level to the downside, which represents a strong support area for the pair. A doji candle in today’s session to form the break may indicate there will be a tussle between buyers and sellers. Momentum indicators suggest there is still a bearish bias however, RSI has entered oversold territory. If the current trading session results in price closing below the 86.91 price line, the downtrend has support.

Impact event: Ivey PMI data will be released at 17:00 GMT+2 and will impact all CAD pairs.

CAD/CHF

The CAD/CHF pair looks strongly oversold. A break of the lower Bollinger band in yesterday’s session further indicates oversold conditions. RSI indicates that bearish momentum is decelerating with a doji candle highlighting indecision for the pair. No reversal is indicated in MACD though, as the pair moves further into negative territory.

USD/CAD

The USD/CAD pair has hit a resistance line at the 1.255 price level. Strong bullish moves in the last few trading sessions indicate the U.S. Dollar continues to strengthen. MACD indicates a momentum reversal as sentiment appears to be turning more bullish. A break of the 1.255 price line will provide more weight to the uptrend.

EUR/CAD

A break of the 1.534 resistance line highlights the strong bullish sentiment in the Euro over the last trading week. RSI indicates conditions are overbought for the pair and despite several ‘touches’ of the upper Bollinger band, there appears to be no reversal imminent; further confirmed by the strong bullish momentum on MACD.