The Canadian Dollar Is Weak In Friday Trading

• 16 Feb 2018

CAD/JPY

The CAD/JPY pair has consistently broken the lower Bollinger band in a fairly marked downtrend since the end of January. Momentum indicators support bearish momentum with further downside potential highlighted on RSI as momentum breaks below the 30 support level. There are no signs currently of a bullish reversal.

GBP/CAD

The GBP/CAD pair has broken a previous market top at the 1.756 price level. The pair is looking overbought, with a test of the upper Bollinger band and an approach to the 70 resistance line on RSI. A momentum reversal is underway on MACD which may suggest there is further upside for the pair.

Impact event: U.K. Retail Sales data will be released at 11:30 GMT+2 and will impact all GBP pairs.

NZD/CAD

The NZD/CAD pair has consistently broken the upper Bollinger band and the bullish price action looks set to continue. Momentum indicators support the strong bullish move, with RSI moving past the 70 resistance line. Buyers appear to have strong enough conviction to drive prices higher despite the pair reaching overbought conditions.

NZD/USD

The New Zealand dollar continues its dominance with a strong appreciation against the U.S. Dollar in recent trading. The question is whether the dominance can continue as the pair has reached overbought conditions. U.S. dollar weakness has remained a theme for the start of 2018, however, fundamental factors are likely to come into play and impact near-term price action for the pair.