Ticker tape by TradingView

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

FLASH SALE
Take 40% off the Edge finder using code "READER"
GET ACCESS NOW

want to see what we're trading?

Join The VIP Community!
Our entries, exits & analysis
Live Webinar Coaching
Trading Chatrooms
Strategy Library 
Exclusive Trading Guides
Use Code "READER" for 10% OFF!
JOIN NOWJoin FREE Discord
A1 Trading Podcast
We Like These Pairs For Next Week

As this week comes to a close, we are looking ahead at future setups that could be some of the best opportunities for the next several trading sessions. Here are some pairs for next week that we are looking at. EUR/JPY Recent data has shown a slow down in the German manufacturing sector. With European […]

Read More
More Downside On The SPX500 After This?

When it comes to testimonies, it's all in how you say it. Jerome Powell has to be very particular in the way he makes his statements and answers the ensuing questions. Here is what might be in store for the market in the coming days and weeks, and whether or not there will be more […]

Read More
More Upside For Yen After This

The historically 'safe' currency to hold in times of recessions is in a unique situation now with a couple factors in place. Here is why the yen is stronger today as well as some trade setups that could push its value either up or down. Weaker Yen Now, Stronger Yen Later The Bank of Japan […]

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
homescreensmartphone linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram