CAD- Canadian Dollar, Loonie
As the Canadian economy gets healthier, the Bank of Canada has decided to lessen their current quantitative easing and give Canada room to grow on its own. CAD is already performing exceptionally compared to the other currencies and is predicted to be the favored for the rest of the year by analysts.
Resources and Employment:
Due to Canada's abundance in natural resources, their business is still heavily in demand to other countries, especially in the US. The price of oil is on the rise as well which is a good sign for the loonie as Canada starts coming out of the pandemic and things seem to be reaching normalcy again.
Canada has projected to lower their unemployment rate by 0.2% when the data comes out this Friday. The number of employment change is expected to be significantly less than last month, so this currency will probably go through some volatility this week, and especially towards the end of this week.
CADJPY on the 1D chart has shown great upside movement from the start of February. This pair will likely find support on that steep blue trend line. There is also additional support in the low 86s, but it seems that price will bounce off that trend line before it can reach support. With momentum this heavy to the upside, it would be wise to stick with the trend until we start to see some technical patterns suggesting price will go lower.
Retail is heavily bearish against the Canadian loonie on the major CAD pairs which is directly countering the big upside this currency has had the past few months. Again, the trend will likely continue to the upside regardless of retail sentiment right now. Fundamentals and technicals support CAD heavily for the time being so it might be some time before we see CAD turn bearish.
GU, Gold, SPX Recover From Setups5/14/2021 GBP/USD Analysis GU on the 4H chart hits resistance and retraces, but support in the low 1.4000s lies right below it. News of US retail sales missed expectations which could be good news for the pound. Retail might be looking to enter around that big support zone marked in […]
Crazy enough, I took a trade on CAD/CHF that resulted in a major profit, and then it set up again... You can read the blog post I made about it here. So very similar to my last trade, I was bullish on the CAD, and liked the idea of jumping in on another pullback. Here's […]
Look out traders! On Friday the 14th of May, the US will be printing their monthly retail sales report so here's what to expect... The USD Retail Sales Report is set to release on Friday which shows the total value of sales at a retail level. As consumer spending accounts for a majority of economic […]