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Dollar in demand

al_dcdemo Posted 18 May  in #Trader's blog #USD/CAD #Loonie #Daily Resistance 3 #Previous Week High #Victoria Day
The Dollar gained across the board today, shedding 50-100 pips from most of its major counterparts. The biggest loser appears to be the Loonie, which lost almost cent and a half in thin holiday trading (it's Victoria Day in Canada).
It has broken above the top of declining four-week consolidation just below 1.21 and traded up to Previous Week High and Daily Resistance 3 at 1.2150. If this is real breakout, price should not go lower than the 1.2050 - 1.2100 band on the pullback. We shall see soon…
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USD/CAD to see some more downisde

al_dcdemo Posted 30 Apr. as Analysis on USD/CAD, Target: 1.1922, Date: 1st of June, 12:00 GMT  in #Technical analysis #Oil #Break #USD/CAD #Consolidation #Correction #Uptrend #Loonie #Range Support #Springboard
Monthly chart:
The pair is in uptrend since 2011. It broke 200 month SMA in January and then traded around 50.0% retracement (of the January 2002 to November 2007 decline) for nearly three months. On April 15th the pair broke back down and, after brief pause above 200 month SMA, it continued lower to clear stops below 1.20 level. The confluence of the broken trendline (drawn off July 2003, May 2004 and March 2009 highs) and 38.2% retracement should now offer some support ahead of 20 month SMA.
W…
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al_dcdemo 3 May

UPDATE 2: Volatility shall continue in the week ahead as we will get data points from both countries. From Canada: Trade Balance on Tuesday, Ivey PMI on Wednesday, Building Permits m/m on Thursday, Employment Change and Unemployment Rate on Friday. From US: ISM Non-Manufacturing PMI on Tuesday, ADP Non-Farm Employment Change on Wednesday and Non-Farm Employment Change on Friday. Initial resistance is 20 day SMA and then stronger one at 1.2350 (previous range bottom). Support is now defined in 1.1950 - 1.2000 band.

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al_dcdemo 10 May

UPDATE 3: As is usual for this pair in most of the times, it closely followed oil. WTI traded up to 62.50 on Wednesday and the pair made new marginal low just below 1.1950. But as oil then reversed sharply from the highs so did the pair from the lows and traded all the way back to retest weekly opening levels before stabilizing. There is strong demand coming into this pair below 1.20 as this was the second sharp rejection from below that.

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al_dcdemo 11 May

UPDATE 4: There's few lower-tier economic indicators coming in from Canada in the week ahead, but the main focus will be on the latest US releases, (Core) Retail Sales, PPI, Unemployment Claims and Prelim UoM Consumer Sentiment. The direction in the pair will continue to depend on oil until it will found balance and that likely won't be anytime soon. Support remains in 1.1950 - 1.2000 band, while initial resistance comes in a way of 20 DMA.

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al_dcdemo 17 May

UPDATE 5: Price action in commodity pairs was slightly different than that of European pairs. The Dollar was weaker in the first part of the week as the pair revisited lows below 1.20. It held there for a good day before bears gave in and the pullback that followed in the second half of the week was much deeper than that in the Europeans. Weekly candle is still of range type but looks more bearish than the previous one.

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al_dcdemo 18 May

UPDATE 6: Canadian banks will be closed on Monday in observance of Victoria Day, but the rest of the week ahead is quite calendar heavy, with CPI, Retail Sales and Wholesale Sales reports along with a speech from BOC Governor Poloz. Add that to FOMC Meeting Minutes and inflation report to come from the US and there's potential for a volatile week ahead. 1.20 level in Loonie is becoming pivotal with the initial support now into 1.19, while the first resistance may come in at 20 DMA.

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Loonie headed for a retest of previous range bottom

al_dcdemo Updated 21 Apr.  in #Trader's blog #Oil #Trade #USD/CAD #Range #Loonie
Dollar strength continues into Tuesday, but price action is still choppy with major pairs contained in ranges.
Exception is Loonie, which broke out of its 3-month range last week and is now on its way to retest the bottom of that range (now resistance) between 1.2350 and 1.2400. Provided that oil keeps appreciating for at least a couple of weeks/months, that may prove to be a great trade:
Entry: 1.23 - 1.235
SL: above 1.24
TP1: just above 1.21
TP2: 1.155
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USD/CAD awaits Poloz

al_dcdemo Updated 15 Apr.  in #Trader's blog #USD/CAD #Boc #Gdp #Loonie #Daily Support 1 #Weekly Support 1
USD/CAD sold off sharply after BOC left rates on hold, revised up its inflation forecasts and only just slightly downgraded its shorter-term GDP projections. The pair is stalling ahead of Daily Support 1 (1.2418) and Weekly Support 1 (1.2415) and appears to be waiting for BOC Press Conference, which starts at 15:15 GMT.
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Upside in USD/CAD appears more likely

al_dcdemo Posted 31 Mar. as Analysis on USD/CAD, Target: 1.2720, Date: 1st of May, 12:00 GMT  in #Technical analysis #USD/CAD #Boc #Bullish #Uptrend #Loonie #Overbought #Descending Triangle #Strong Rally #Strong Selling
Monthly chart:
The pair is in uptrend since 2011. It broke 200 month SMA in January and traded above 50.0% retracement of the January 2002 to November 2007 decline. I'd say the retracement has been properly broken as the pair posted second monthly close above that level in March. February 2009 high (1.3064) now comes into focus, before 61.8% retracement at 1.3462. The broken 200 month SMA is acting as support.
Weekly chart:
After strong rally since June 2014 and 1000 pips of gains till the end …
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al_dcdemo 6 Apr.

UPDATE 2: Friday's NFP move appears to be a bit overdone and a pullback to 1.2500 - 1.2550 appears likely, before potential follow through move lower. The direction will also strongly depend on Canadian Ivey PMI and US ISM Non-Manufacturing PMI, which will be released on Monday at 14:00 GMT. Range support at 1.2350 is the first strong level to watch.

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al_dcdemo 11 Apr.

UPDATE 3: Canadian Dollar defied US Dollar strength in the first part of the week, but after huge build-up was shown in Crude Oil Inventories report on Wednesday, the pair reversed sharply. FOMC Minutes, released few hours later, didn't help it. It added another cent on Thursday and early Friday, but another reversal came after much better than expected Canadian Employment Change (though the details were not as strong).

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al_dcdemo 12 Apr.

UPDATE 4: Focus in the week ahead will be on the BOC meeting on Wednesday. Even though no change is expected in Overnight Rate, the market may be expecting dovish Rate Statement or at least some downside revisions in the Monetary Policy Report. If that doesn't happen and oil continues to consolidate, there's risk that the pair breaks three-month range bottom at 1.2350. Most likely scenario is, however, that the pair remains range-bound.

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al_dcdemo 18 Apr.

UPDATE 5: The pair was the star performer among majors this week (pip and percentage-wise) and also had the greatest weekly trading range. The break of the 3-month range came on Wednesday after the combination of almost hawkish BOC and recovering price of oil sent the pair down to 1.2280. The downtrend continued on Thursday and into Friday, but the pair then recovered by almost 200 pips in a broader USD pullback.

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al_dcdemo 19 Apr.

UPDATE 6: Along with two speeches from Poloz and a couple of US data releases, there's not much on the calendar that may move the pair in the week ahead. Focus will likely be on technicals and flows as longer-term bulls will begin to scale into their long positions and shorter-term bears will be adding to their shorts. Most probable scenario is a retest of the broken range bottom (1.2350) from below and then continuation lower.

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USD/CAD sells off on neutral BOC

al_dcdemo Updated 4 Mar.  in #Trader's blog #USD/CAD #Pmi #Loonie #Dovish #Neutral #Rate Statement
USD/CAD sold off after BOC didn't cut rates and published neutral rate statement. Even though market wasn't expecting any cuts, apparently it was hoping for a bit more dovishness from them. EUR/CAD fell more than 150 and GBP/CAD 200 pips, with negative PMI data released in the morning weighing on both.
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USD/CAD will retrace a bit

al_dcdemo Posted 28 Feb. as Analysis on USD/CAD, Target: 1.2167, Date: 1st of April, 12:00 GMT  in #Technical analysis #Oil #USD/CAD #Boc #Fed #Uptrend #Loonie #Overbought #Descending Triangle #Strong Rally
Monthly chart:
The pair is in uptrend since 2011. It broke 200 month SMA in January and traded above 50.0% retracement of the January 2002 to November 2007 decline. If it convincingly breaks the retracement then February 2009 high (1.3064) comes into focus, before 61.8% retracement at 1.3462. The broken 200 month SMA is now acting as support.
Weekly chart:
After strong rally since June 2014 and 1000 pips of gains till the end of 2014, the pair added further 1100 pips in January 2015 alone. Tech…
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al_dcdemo 7 Mar.

UPDATE 1: Action in the pair is still range bound (on the daily chart) and is not yet clear which way the descending triangle will break, but most likely it will be the topside. January 30 high would then provide further resistance before 1.3000 - 1.3050. On the downside, strong support between 1.2350 - 1.2400 dominates.

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al_dcdemo 15 Mar.

UPDATE 2: Last Friday's breakout from descending triangle proved to be real one as the pair continued to trade higher. There was quite substantial pullback on Thursday, but it was quickly soaked up. On Friday, the pair managed to break above January 30 high (1.2799), but then closed just below it. Despite this, technical picture remains bullish.

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al_dcdemo 21 Mar.

UPDATE 3: Price action in the pair closely resembled that in other major pairs, which is not surprising at all, since the whole week unfolded around single main event - FOMC meeting. Small range in the beginning of the week, nearly 400 pip spike lower on Wednesday and then retest of pre-announcement range, which was followed with a broad USD sell-off on Friday. The pair closed just below 50 DMA but above descending triangle "roof" , which was broken last week. If the two levels give way, proven weekly resistance at 1.2350 may be tested next.

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USD/CAD goes parabolic

al_dcdemo Posted 30 Jan. as Analysis on USD/CAD, Target: 1.3092, Date: 2nd of March, 12:00 GMT  in #Technical analysis #USD/CAD #Boc #Uptrend #Loonie #Overbought #Strong Rally #Strong Fundamentals #Smooth Deceleration
Monthly chart:
The pair is in uptrend since 2011 and, having broken 200 month SMA in January 2015, it is currently capped by 50.0% retracement of the January 2002 to November 2007 decline. If that gives way then February 2009 high (1.3064) comes into focus before 61.8% retracement at 1.3462. The broken 200 month SMA should now act as a support.
Weekly chart:
After strong rally since June 2014 and 1000 pips of gains till the end of 2014, the pair has added further 1100 pips in January 2015 alone.…
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al_dcdemo 8 Feb.

After oil continued the rebound that was commenced last Friday, the pair finally got some respite and sold down to 1.2350. From there it bounced and started to form what appears to be a descending triangle. If it breaks and holds below 1.2300 - 1.2350, the first stronger demand may not come in until closer to 1.20, provided that the oil also continues the correction.

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al_dcdemo 15 Feb.

It looked like oil (WTI) is resuming its downtrend, but it was unable to fall below 48 and it then reversed higher in the second part of the week. The pair closely mirrored the action in the oil. After fake-out higher on Tuesday and Wednesday it then sold off and ended the week in the lower part of the recent range. Currently, it depends mainly on the oil where the pair will go next, but it will need to break either 1.2350 or 1.27 to provide clues about further direction.

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al_dcdemo 22 Feb.

Since oil started its extended fall, Loonie has been one of the most volatile major pairs. Its weekly range was 200 pips this week which is even more on percentage basis, compared to other major pairs. However, it was unable to make any progress outside of current consolidation (descending triangle) on the daily chart. Whichever way it will break out of this formation, will likely determine further direction. If oil prices will continue to stabilize in the days/weeks ahead, that direction will most likely be down.

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WallStreet6 24 Feb.

This one is a bit off for now, but it's going in the right direction. We still have a couple interesting days ahead, so might get much closer. Great analysis!

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al_dcdemo 24 Feb.

I expected slow grinding into 1.30, similar to USD/JPY rally in November 2014 - December 2014, but this pair is different and linked to oil. Thanks!

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