Canadian Dollar Movement and Predictions (Singapore)
December 26 marked the beginning of the straight declines for USD/CAD and lost the momentum. At the same time, their momentum is also fading. The price of USD/CAD bounced aggressively to 1. Protected content September’s low. Although 1. Protected content to be a really tough level to break.The end of December took the price down to 1.25, which is 50%retracement of Sep-Oct range.
Traders seemed to be interested in pairing longs in anticipation of powerpack of fundamental(US and CA) employment data. USD/CAD has other two supplements i.e institutional positioning and the US/CA 2-Year rate speed.
Determining the price action of USD/CAD has been done recently by the spread. A recent rebound in rate hike expectations by Bank Of Canada helped in providing an unwinding of short positions. Technically the current spread is ~ 25bps. If the breakout manages to widen beyond 35bps in favor of the US, traders would likely see a breakout higher in USD/CAD.
Another potential development came from the positioning side. Long CAD trades in the final week of the previous year came as a result of net speculative positioning. Net long position fell down by more than 60% from 45,800 and net long futures contracts by 28,555 to a mere 17,346.
The breakout level that could indicate the amount of selling was overdone and a USD rally on its way would be the break above 1. Protected content midpoint ) and a break above 1. Protected content midpoint ) would indicate the September-October move higher is set to resume. Facts apart all traders believe that USD/CAD prices may continue to fall. But on the contrary, the current scenario and recent changes in this give us all a stronger USD/CAD trading bias.
Tags: daily forex trading signals, forex signals, Forex tips, forex trading signals, forex trading tips, Global Stock Markets, Stock tips, USD CAD, USD CAD signals, USD CAD trading, USD CAD trading signals, USD/CAD