Canada will deliver its MoM new housing price index for January, which currently doesn’t have any forecast available. We know that the index has been somewhat of a decline since May of last year, when the April figure peaked at +1.9%. Last month’s reading was at +0.2%, but the actual number shows up below it, or even in negative territory, CAD might take a slight hit against its major counterparts.
Currently, USD/CAD continues to trade inside a short-term range roughly between the 1.2650 and 1.2797 levels, which has been in play from around the end of January. Given that the rate is very close to the upper bound of that formation, there is a chance that a break may follow. Until that break happens, the traders will remain neutral and continue observing the price action. But for the Russia-Ukraine conflict, the US Dollar's fundamental moorings appear to be less supportive.
On Friday, the USD/CAD traded higher and closed the day in the positive territory near the price of 1.2750. Yesterday it fell a little, dropping to 1.2720. USD/CAD is still trading above the MA (200) H1 moving average line (1.2710). The situation is similar on the four-hour chart. Based on the foregoing, it is probably worth sticking to the north direction in trading, and while the USD/CAD remains above MA 200 H1, it may be necessary to look for entry points to buy for the formation of a correction.
On the upside, a push back above the 1.2790 barriers might attract a few more buyers into the game, who might help lead the rate towards slightly higher areas within the previously discussed range. USD/CAD could then travel to the 1.2816 obstacles, a break of which might set the stage for a move to the 1.2848 level.
If eventually, the pair breaks out through the lower side of the aforementioned range, this will confirm a forthcoming lower low, possibly clearing the way to some lower areas. USD/CAD could then drift to the 1.2638 hurdles where a temporary hold-up might occur. However, if the sellers stay in control, they may easily drag the rate further south, aiming for the 1.2601 level or lower to 1.2560.
Risk Disclosure: Trading Foreign Exchange (Forex) and Contracts of Difference (CFD's) carry a high-risk level. By registering and signing up, any client affirms their understanding of their own personal accountability for all transactions performed within their account and recognizes the risks associated with trading on such markets and such sites. Furthermore, one understands that the company carries zero influence over transactions, needs, and trading signals. Therefore, it cannot be held liable nor guarantee any profits or losses.
Currently, USD/CAD continues to trade inside a short-term range roughly between the 1.2650 and 1.2797 levels, which has been in play from around the end of January. Given that the rate is very close to the upper bound of that formation, there is a chance that a break may follow. Until that break happens, the traders will remain neutral and continue observing the price action. But for the Russia-Ukraine conflict, the US Dollar's fundamental moorings appear to be less supportive.
On Friday, the USD/CAD traded higher and closed the day in the positive territory near the price of 1.2750. Yesterday it fell a little, dropping to 1.2720. USD/CAD is still trading above the MA (200) H1 moving average line (1.2710). The situation is similar on the four-hour chart. Based on the foregoing, it is probably worth sticking to the north direction in trading, and while the USD/CAD remains above MA 200 H1, it may be necessary to look for entry points to buy for the formation of a correction.
On the upside, a push back above the 1.2790 barriers might attract a few more buyers into the game, who might help lead the rate towards slightly higher areas within the previously discussed range. USD/CAD could then travel to the 1.2816 obstacles, a break of which might set the stage for a move to the 1.2848 level.
If eventually, the pair breaks out through the lower side of the aforementioned range, this will confirm a forthcoming lower low, possibly clearing the way to some lower areas. USD/CAD could then drift to the 1.2638 hurdles where a temporary hold-up might occur. However, if the sellers stay in control, they may easily drag the rate further south, aiming for the 1.2601 level or lower to 1.2560.
Risk Disclosure: Trading Foreign Exchange (Forex) and Contracts of Difference (CFD's) carry a high-risk level. By registering and signing up, any client affirms their understanding of their own personal accountability for all transactions performed within their account and recognizes the risks associated with trading on such markets and such sites. Furthermore, one understands that the company carries zero influence over transactions, needs, and trading signals. Therefore, it cannot be held liable nor guarantee any profits or losses.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.