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CAD could be boosted by BOC's decsion and oil prices rebound

Discussion in 'Current Market Sentiments' started by fx-recommends, Jan 21, 2016.

  1. fx-recommends

    fx-recommends Content Contributor

    Aug 6, 2008
    Likes Received:
    USDCAD Daily 21-01-2016 06-12-31 ص.jpg
    CAD has tracked the oil benchmarks rebound, after it had been exposed to massive selling across the broad because of the aggressive oil falling which can erode the Canadian exports value causing financial pressure on the Canadian economy.

    BOC has revised down its 2016 GDP forecast to only 1.4% from 2%, after stalled economic growth in the last quarter of last year.

    But it has decided to keep the interest rate unchanged at 0.5% yesterday driving USDCAD down below 1.45 by disappointing the odds of watching another interest rate cutting.

    Despite the retreating from 1.4687 to 1.4447, USDCAD is still above its daily Parabolic SAR (step 0.02, maximum 0.2) which is reading today 1.4394 in its day number 13 of continued being below the trading rate.

    USDCAD daily RSI-14 is still into the overbought area above 70 reading 76.998, while its daily Stochastic Oscillator (5, 3, 3) which is more sensitive to the volatility is having now its main line in the neutral region coming down from its overbought area above 80 reading 63.129 and also its signal line which is reading now 78.322.

    Important levels: Daily SMA50 @ 1.3774, Daily SMA100 @ 1.3473 and Daily SMA200 @ 1.3037


    S1: 1.4429
    S2: 1.4174
    S3: 1.4048
    R1: 1.4687
    R2: 1.4946
    R3: 1.50

    Have a good day

    Walid Salah El din
    Senior Market Analyst
    Skype : chief.economist.walid

    Tel: UK. +44 1138590277
    Mob: EGY. +20 1224659143

    To open your account at Trade-24 - Click here

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