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IGTFX technical analysis

Discussion in 'Fundamental Analysis' started by igtfx.research, Apr 27, 2010.

  1. igtfx.research

    igtfx.research New Member

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    IGTFX technical analysis
    Market Review – Fundamental Perspective
    The CAD was within a cent of parity with its U.S. major counterpart as traders expected a signal that a bailout of Greece would succeed in preventing a financial crisis from spreading. This increased the demand for higher yielding assets. The CAD reached nearly a one for one basis against the USD and traded at 1.0003. During the last two months, the CAD could gain about 700 pips against the USD and touched on April 21st its highest level since June 2008 at 0.9131. Last week, the USD recovered as much as 0.6% after the Canadian inflation rate failed to keep pace with the expectations which were forecasted. Furthermore the CAD weakened as crude oil for the June delivery dropped as much as 1.6% after earlier gaining 0.6% to 85.63 USD a barrel. Currently, crude oil is trading at 83.95 a barrel. Furthermore the EUR could gain versus the CAD and reached 1.3410. It seems that the CAD tends to rise and fall similar to commodities and equities.
    The GBP rose against the USD for the first time in three days after a report showed that the U.K. house prices rose in April for a ninth consecutive month. That solidified the expectations that the economic recovery is gaining traction. The GBP gained versus 13 of its 16 major counterparts. The USD drooped 0.6% to 1.5473 and the EUR weakened 0.9% to 0.8621 after earlier reaching 0.8604. This was the strongest level since the end of January 2010. The gains for the GBP reduced its yearly losses against the USD to 4.4%.
    The JPY dropped against its most traded counterparts as signals that the global economy is recovering were shown. This dented the demand for the currency as a refuge. The AUD traded near its highest level since September 2008 versus the JPY on speculation that U.S. data this week will show that housing market is stabilizing and consumer spending will raise in the first quarter.
    Daily Technical Analysis - Our Focus Currencies for Today

    USD/CAD (Daily)
    [​IMG]

    On a long term view, the USD has been trading in a bearish trend channel versus the CAD. Recently, the currency pair touched its support level around 0.9968 and the prices could recover. It seems that the support could be strong enough to stop the downward trend but it remains to be seen if the support could confirm its strength.

    Intraday Support & Resistance (Daily)Support Levels around Resistance Levels around
    0.9968 1.0082
    N/A 1.0180
    N/A 1.0241


    EUR/CAD (1 Hour)
    [​IMG]
    After touching its support level around 1.3297, the EUR increased to its resistance level around 1.3416. As the prices reached this level, the currency pair rebounded. During April, whenever the prices touched this level, the EUR dropped. Also a crossing Stoch indicator through the signal line from the top may support a bearish trend. Next support could be around 1.3255.

    Intraday Support & Resistance (H1)Support Levels around Resistance Levels around
    1.3355 1.3416
    1.3297 1.3665
    1.3255 1.3725
     
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