Today, one day before the US bank holiday 'Independence Day' (regarding changed trading hours please check this page), we want to take a brief look at the USD/CAD.
After breaking out of the long-term trend channel on the downside, further losses could be expected and indeed did the currency pair go for a test of the yearly lows around 1.3070.
As of now, a sustainable break out hasn't yet happened, but it wouldn't come as a surprise to see another attempt to break lower over the next days.
Beside the fact that a bank holiday in the US usually results in a drop in volatility - which has been, based on our experience, usually negative for the USD/CAD due to their positive correlation to volatility, but also because disappointing economic data from the US (such as today's ISM Non-Manufacturing data set) could trigger another wave of selling in the USD, most likely driven by another push lower in 10-year US yields below 2%.
If on the other hand, if the data comes in as equally solid as last Monday's ISM Manufacturing, the USD/CAD should hold above 1.3070, at least for now. Even though the currency pair stays technically bearish below 1.3430 on a daily time-frame, finding a potential short-trigger around 1.3250.
Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 84% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
After breaking out of the long-term trend channel on the downside, further losses could be expected and indeed did the currency pair go for a test of the yearly lows around 1.3070.
As of now, a sustainable break out hasn't yet happened, but it wouldn't come as a surprise to see another attempt to break lower over the next days.
Beside the fact that a bank holiday in the US usually results in a drop in volatility - which has been, based on our experience, usually negative for the USD/CAD due to their positive correlation to volatility, but also because disappointing economic data from the US (such as today's ISM Non-Manufacturing data set) could trigger another wave of selling in the USD, most likely driven by another push lower in 10-year US yields below 2%.
If on the other hand, if the data comes in as equally solid as last Monday's ISM Manufacturing, the USD/CAD should hold above 1.3070, at least for now. Even though the currency pair stays technically bearish below 1.3430 on a daily time-frame, finding a potential short-trigger around 1.3250.
Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 84% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
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.