the daily chartist

USD/CAD recap for 01.02.2016

published 4 years ago

The Loonie is still in a correction mode, after falling from 1.45569 towards 1.38801 and found some support there. After the Rate Hold, CAD depreciated for some time and then movement down accelerated with the correction that is occurring (currently ending) in WTI and BRENT Oil. As I added "currently ending" (will be explained in WTI analysis), USD/CAD will start to crawl up again as oil prices resume their movement down towards $30. The pair will make another leg up towards 1.44044, make a slight correction, and then resume its movement again for 1.45569. Everything depends if sentiment for Oil continues to be negative and on this Friday we have a lot of news coming in for the Loonie. Employment Change forecast of 5.4K from 22.8K, Trade Balance forecast of -2.2B against -2.0B and Unemployment Rate forecast of 7.1% against 7.1% previous. Also Ivey PMI is on the calendar on a forecast of 50.3 against 49.9. Have this in mind when going long (as the correlation with Oil suggests).