We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
GBP/USD
Bullish
USD/JPY
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Bullish
Oil - US Crude
Bearish
Bitcoin
Bearish
More View more
Real Time News
  • Japan’s All Industry Activity Index (MoM) (AUG) Actual: 0.0% Est: 0.1% Previous: 0.2% #JPY
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.04%, while traders in Germany 30 are at opposite extremes with 78.78%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/cCfWKn4CzA
  • (ASEAN Fundamental Forecast) US Dollar Outlook: MYR, SGD May Fall on CPI. Rupiah to Drop on Cut? #USD $USDMYR $USDSGD $USDIDR - https://www.dailyfx.com/forex/fundamental/article/special_report/2019/10/21/US-Dollar-Outlook-MYR-SGD-May-Fall-on-CPI-Rupiah-to-Drop-on-Cut.html?CHID=9&QPID=917702 https://t.co/3u9AfXqbeN
  • Forex Update: As of 04:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.22% 🇦🇺AUD: 0.10% 🇨🇦CAD: -0.03% 🇯🇵JPY: -0.10% 🇨🇭CHF: -0.14% 🇬🇧GBP: -0.43% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/ZjiVEE5Iuw
  • Heads up: Japan’s All Industry Activity Index (MoM) (AUG) is due at 4:30 GMT (15 min) Est: 0.1% Previous: 0.2% #JPY
  • Heads Up:🇯🇵 JPY All Industry Activity Index (MoM) (AUG) due at 04:30 GMT (15min), Actual: N/A Expected: 0.1% Previous: 0.2% https://www.dailyfx.com/economic-calendar#2019-10-21
  • Indices Update: As of 04:00, these are your best and worst performers based on the London trading schedule: US 500: 0.36% Wall Street: 0.31% France 40: 0.26% Germany 30: 0.22% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/2lBu42B9fy
  • Over the past 30 days, #Ghana Cedi, #Egyptian Pound and #Kenyan Shilling have been the best performing African currencies vs #USD with 0.85%, 0.67% and 0.17% spot returns respectively
  • Have you joined @DailyFX @facebook group yet? Discuss your #forex strategies and brush up on your skills with us here: https://t.co/jtY1G7g8yx https://t.co/m2sMVRiVef
  • LIVE NOW: Join Currency Analyst @ZabelinDimitri as he previews the upcoming week’s main political themes and discusses their impact on the financial markets. Register here: https://www.dailyfx.com/webinars/146770987?utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
USD/CAD, EUR/CAD Price: In Limbo After Failing Nearby Reversal Zone

USD/CAD, EUR/CAD Price: In Limbo After Failing Nearby Reversal Zone

2019-10-08 09:45:00
Mahmoud Alkudsi, Market Analyst
Share:

Canadian Dollar Outlook

Check our latest Q4 forecasts for free and learn what is likely to move the markets at this time of the year.

EUR/CAD, USD/CAD – Bullish Week

Last week, Canadian Dollar softened slightly against US Dollar and Euro, as USD/CAD closed in the green above 50-day average with a 0.5% gain. Additionally, EUR/CAD closed with nearly 0.9% gain.

Alongside this, since the start of October the Relative Strength Index (RSI) has been moving above 50 on both pairs indicating to the end of the downtrend momentum and the possible start of uptrend move.

Just getting started?See our Beginners’ Guide for FX traders

USD/CAD DAILY PRICE CHART (DEC 15, 2017 – OCT 8, 2019) Zoomed Out

 USD/CAD, EUR/CAD Price: In Limbo After Failing Nearby Reversal Zone

USD/CAD DAILY PRICE CHART (JulY 1 – Oct 4, 2019) Zoomed In

USDCAD price daily chart 08-10-19 Zoomed In

From the daily chart, we notice since Sep 3 USD/CAD has been moving in a trendless pattern, creating a higher low with a lower high See the chart (zoomed out). Hence, the price should break above the Sep 3 high at 1.3382 or the Sep 10 low at 1.3134 in order to move in a clear trend.

On Thursday USDCAD buyers rallied the price to its highest level in four weeks. However, the pair changed course eyeing a test of the low end of current trading zone 1.3256 – 1.3357. Any close below 1.3256 could press the pair towards 1.3166. Nevertheless, the daily support levels underscored on the chart (zoomed in) should be kept in focus.

It’s worth noting that, USDCAD could fall towards 1.2920 - this level has been mentioned in our previous updates in different approach. If the price breaks and remains below the neckline of double top pattern residing at the Sep 10 low mentioned above.

On the other hand, any break above the Sep 3 high would negate this pattern. See the chart (zoomed in) to know more about higher trading zone/s with the weekly resistance levels to monitor in a further bullish scenario.

Having trouble with your trading strategy?Here’s the #1 Mistake That Traders Make

EUR/CAD DAILY PRICE CHART (Jan 3, 2017– Oct 8, 2019) Zoomed Out

EURCAD price daily chart 08-10-19 Zoomed out

EUR/CAD DAILY PRICE CHART (AUG 12 – Oct 8, 2019) Zoomed In

EURCAD price daily chart 08-10-19 Zoomed in

Looking at the daily chart, we notice on Thursday EUR/CAD rallied to its highest levels in three weeks. In the following day, the price rebounded from the high end of current trading zone 1.4476 – 1.4644.

Thus, EURCAD could be looking for a test of the low end of the zone, contingent on clearing the daily support levels underlined on the chart (zoomed in). Further close below the low end could see the price trading towards the vicinity of 1.4389-79. Although, the weekly support levels in gray should be considered.

That said, any close above the high end of the zone could cause a rally towards the vicinity of 1.4736-27. A close above this level may cause more bullishness towards 1.4818. In that scenario, the daily and weekly resistance area and levels should be watched closely.

We value your opinion, please access short online survey

Written By: Mahmoud Alkudsi

Please feel free to contact me on Twitter: @Malkudsi

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.