The Oil gap that was created over the weekend let CAD strong today over all major pairs as the gap got filled and just kept going, reaching major support and resistances over the board. USDCAD has a tendency to not necessarily give clear signals of where it wants to go, so in this case we like to get possible clues from other correlated pairs.

USDCAD closed today at support of 1.277 (also the 365 ema) after it bounced right off the daily 21 ema, as it should do in a bearish trend. Will this support hold or will we see a break to 1.268? No clear signal as of yet

USDCAD 19

CADCHF and CADSGD seems to also be at an area of great resistance, and we are also looking for some type of direction signal before we decide to make a move. Price action signals on theses pairs could give us and edge on trading the USDCAD.

CADCHF D1

CADCHF 19

CADSGD D1

CADSGD 19  In the end our bias on Oil stays the same and is the main influence of what will happen to the pairs above. We will want to stay alert for the BOC Poloz speech Tuesday and Oil inventories on Wednesday.

WTI 19

3 thoughts on “CAD CORRELATED OUTLOOKS 19-04-2016”

  1. Ryan Gandalf van Jaarsveld says:

    Thanks Guy – very interesting because on the one hand we have risk on, weak Yen and on the other we have risk off and strong Yen… And right now we have some stochs getting loaded for some strength… I think it’s amazing that oil went up yesterday despite the Doha outcome. I wonder if oil producers don’t just purchase future contracts to push up the price and then cover their investment by increased profit in selling barrels of oil… I am sure that would cost a fortune though if you are producing a few hundred thousand or million barrels a day at $40 per barrel with a cost of under $10 for Russia and under $1 for Saudi Arabia then you have a bit of money to make more… Food for thought…

  2. Daniel Chan - Forex.Today says:

    Thanks Guy .Excellent work

  3. Daniel Chan - Forex.Today says:

    Thanks Guy

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