A1 Trading Company

April 5, 2021

Is the Canadian Dollar a Buy in 2021?

Frank Cabibi

CAD- Canadian Dollar, Loonie

Fundamental Analysis

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.

Technical Analysis

CAD/JPY 1D chart

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 Sentiment

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.

A1 Edgefinder

Watchlist
Save time looking for setups with the EdgeFinder's watchlist! In a glance, see the EdgeFinder's current top buys and top sells.

Discount code: 'READER'

Access Now

Free

Trading Plan Template
Struggling to build a successful trading plan? Download our template to get started today!
Download
Trading AUD and CAD Post-Rate Hike

Two surprises occurred this week from both central banks of Australia and Canada. Economists forecasted an unchanged discount rate, but the banks had other plans in mind. This caused a heavy positive move for AUD and CAD after reaction to the news. Here is what we are looking for in these types of pairs going […]

Read More
Smart Money to Spike Gold

Over the past week, several news events paved the way of sentiment on monetary policy. Through the forest of mixed uncertainty, we can find the clearing of one asset that looks ready to take off. Gold has come back to a critical level, and it is up to smart money what happens next. EdgeFinder Analysis […]

Read More
Trading Gold & USD Before NFP

Gold is up nearly half a percent today while USD down a third of one as of 10:18 am EST. As we wait for the upcoming and looming NFP numbers this Friday, we can assess the economic data we already have. EdgeFinder Analysis The stock market sighed in relief after the debt ceiling bill finally […]

Read More
DISCLAIMER: All comments made by TraderNick’s Forex Group, LLC are for educational and informational purposes only. All comments should not be construed as investment advice regarding the purchase or sale of any securities or financial instrument of any kind. Please consult with your financial adviser before making an investment decision regarding any securities or financial instruments mentioned by TraderNick’s Forex Group, LLC. TraderNick’s Forex Group, LLC assumes no responsibility for your trading and investment results. All information on any of the platforms utilized by TraderNick’s Forex Group, LLC was obtained from sources believed to be reliable, but we do not warrant its completeness or accuracy, or warrant any results from the use of the information. TraderNick’s Forex Group, LLC, its employees, representatives, and affiliated individuals may have a position or effect transactions in the securities and financial instruments herein and or otherwise employ trading strategies that may be consistent or inconsistent with the provided strategies. Trading of any type involves very high risk and may not be suitable for all investors. TraderNick’s Forex Group, LLC, its subsidiaries and all affiliated individuals assume no responsibility for your trading and investment result. Read our full disclaimer here
Home
Edgefinder
VIP
Menu
homesmartphonelaptop-phonemenu linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram