CAD is mixed today after the BOC discussed their future strategy towards monetary policy and when they will cease buying bonds and raising the interest rate. Here are some reasons why the loonie is a buy right now.
Rising oil prices in the US and globally has benefitted the value of the Canadian loonie. USOil broke highs from 2014 and 2011 in what looks like a double top in the ultra-long term 1W timeframe. If price can close the week above the 155.50s, it will have made a new legitimate level above the high from 11 years ago.
Commodity resurgence is not the only thing helping out the CAD right now. The Bank of Canada has also raised rates to 50bp and plan to make more hikes this year. A more hawkish policy is bringing more attention from investors who are looking for the best places to put their money. So, a tighter policy can help kickstart the risk-off investment that investors are looking for right now.
The trailing six month performance is a general trend to the upside for the Canada 10 year government bond yields.
CADJPY is down today as price nears support from the rising trend line on the 1D timeframe and the 200 DMA. This level looks promising for a bounce which could lead to another test around the 91.182 level as the commodity-heavy currency sees oil prices surge.
GBPCAD fell under support around the 1.69500s and continues to drop lower on the 1D timeframe. It looks like the pair could see a test at the bottom around 1.66800s. This lower low suggests further downside due to recent risk-off pressure.
EURCAD is behaving the same way as GBPCAD, so it's the same trade idea. However, there is not bottom in sight until you get to 2017. That would be about another 1% drop in price to get there, so EURCAD has a ways to fall before any kind of reason to bounce.
Just before the scheduled shutdown at 12:01 am on Sunday, Congress voted to extend the deadline for another 45 days. Yields jumped higher to above 5.1% which has remained elevated for some time. As we enter an historically bullish month for the indices, here are some setups on dollar, gold and index setups EdgeFinder Analysis […]
GDP numbers came in lower than expected in the US, marking the third straight drop in economic output. This is usually good news for the stock market indices and gold, however, bond yields continue to hold up above 5.1%. Here are some potential trade setups for both dollar and index longs depending on how the […]
Hi, I’m Nick! I am the founder of A1 Trading, market analyst, YouTuber, and creator of the EdgeFinder software tool. I caught a huge winner on USoil with the help of the EdgeFinder! In this article, I’ll walk you through my thought process behind the trade and how I found this crazy runner! Finding My […]
