CAD Analysis and Talking Points
- USDCAD | Resistance Holds Firm Yet Again
- EURCAD | Upside Limited, Bearish Bias Longer Term Intact
- CADJPY | Key Fibo Holding For Now, Pullback Could See 82.50
See the DailyFX Q2 FX forecast to learn what will drive the currency throughout the quarter.
USDCAD | Resistance Holds Firm Yet Again
The pair have once again backed off topside resistance situated at the 50% Fibonacci retracement (1.3370). While momentum indicators are bearish, this is only marginal while trend indicators suggest a lack of direction. Support at 1.33 remains firm for now and ultimately a close below 1.3250 would be needed to pose a bearish outlook. However, for now, the 1.3250-1.3450 range is likely to remain intact in the short term.
USDCAD PRICE CHART: Daily Time Frame (Dec 2018 – Mar 2019)
EURCAD | Upside Limited, Bearish Bias Longer Term Intact
Momentum indicators on the daily and weekly studies continue to show a bearish bias, despite easing slightly. Upside is somewhat limited particularly if EURCAD tops 1.51 with the 100 and 200DMA situated at 1.5130 and 1.5118 respectively, while key resistance sits at 1.52. Longer term view on the cross remains bearish with the cross edging towards 200WMA (1.4830) on a closing break below 1.4870.
EURCAD PRICE CHART: Daily Time Frame (Dec 2018– Mar 2019)
CADJPY | Key Fibo Holding For Now, Pullback Could See 82.50
Momentum indicators continue to point towards a slight bullish bias, however, with resistance at the 50% Fibo holding, further gains may be hard to come by. As such, a pullback from current levels raises scope of a test of 82.50. However, a closing break above could see a test of the descending trendline from the 2018 peak come into focus.
CADJPY PRICE CHART: Daily Time Frame (Sep 2018–Mar 2019)
— Written by Justin McQueen, Market Analyst
To contact Justin, email him at [email protected]
Follow Justin on Twitter @JMcQueenFX