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USDCAD formed a lower high at 1.4323 by tracking the oil prices

Discussion in 'Current Market Sentiments' started by fx-recommends, Jan 26, 2016.

  1. fx-recommends

    fx-recommends Content Contributor

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    USDCAD Daily 27-01-2016 05-18-54 ص.jpg
    The oil benchmarks could lead the movement of USDCAD to watch it forming lower high at 1.4323 with WTI having higher low near $29.25.

    CAD has been exposed to massive selling across the broad in the beginning weeks of this year tracking the oil prices slide which can erode the Canadian exports value causing financial pressure on the Canadian economy.

    On the oil prices slide, BOC has revised down its 2016 GDP forecast to only 1.4% from 2% last week but it decided to disappoint the odds of watching another interest rate cutting by keeping the interest rate unchanged at 0.5% driving USDCAD down below 1.45 to start having its daily Parabolic SAR (step 0.02, maximum 0.2) above the trading rate and today is the day number 5 of continued being above the trading rate reading 1.4606.

    USDCAD daily RSI-14 is in the middle of the neutral territory reading 50.359, while its daily Stochastic Oscillator (5, 3, 3) which is more sensitive to the volatility is having now its main line in the oversold area below 20 area reading 19.320 and also its signal line which is reading now 15.811.

    Important levels: Daily SMA50 @ 1.3837, Daily SMA100 @ 1.3506 and Daily SMA200 @ 1.3074

    S&R:

    S1: 1.4042
    S2: 1.3895
    S3: 1.3811
    R1: 1.4323
    R2: 1.4687
    R3: 1.4946


    Have a good day

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

    walid.s@trade-24.com
    Tel: UK. +44 1138590277
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    http://www.trade-24.com/daily-analysis

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