USD/CAD forms “hanging man” with oscillators overbought pressure
USD/CAD uptrend is constrained by hanging man formation at peaks of 1.4577.
While, leading oscillators indicates overbought pressures, the pair on EOD chart seems to evidence some short term dips upon these indications alerted by RSI and stochastic curves. Currently, RSI converging downwards at 73.4202 with price dips, while %D crossover onn slow stochastic adds bearish pressures.
However, don't get bear trapped as the price has been moving in healthy uptrend channel with timely corrections on weekly charts, so speculators can eye on short term shorting opportunities but certainly cannot afford to be deemed as a trend reversal.
On weekly, the pair has cleared resistance 1.4125 levels decisively, upon breach below these levels it is likely to test the intermediary supports at 1.3751 levels or even exactly at lower trend line.
Loonie's 11 and half years highs could not manage to sustain but the current prices is at 1.4472 which is way beyond 21DMA and the upper channel resistance.
Fundamentally, Bank of Canada also adds some strength to CAD by holding monetary policy rate unchanged in face of weaker growth outlook.
The BoC stands pat at its key policy rate unchanged at 0.5% yesterday despite a weaker economic outlook relative to their October forecasts.
Growth for 2016 is now forecast to be just 1.4%, 0.6% lower than anticipated in the previous Monetary Policy Report (MPR). The Bank continues to see a marked acceleration in growth in 2017, to 2.4%.
Much of the near-term weakness is attributed to lower commodity prices and temporary factors, while the Bank also reiterated that "The declines in Canada's terms of trade and in the value of the Canadian dollar over the past year and a half have set in motion complex adjustments".
While, leading oscillators indicates overbought pressures, the pair on EOD chart seems to evidence some short term dips upon these indications alerted by RSI and stochastic curves. Currently, RSI converging downwards at 73.4202 with price dips, while %D crossover onn slow stochastic adds bearish pressures.
However, don't get bear trapped as the price has been moving in healthy uptrend channel with timely corrections on weekly charts, so speculators can eye on short term shorting opportunities but certainly cannot afford to be deemed as a trend reversal.
On weekly, the pair has cleared resistance 1.4125 levels decisively, upon breach below these levels it is likely to test the intermediary supports at 1.3751 levels or even exactly at lower trend line.
Loonie's 11 and half years highs could not manage to sustain but the current prices is at 1.4472 which is way beyond 21DMA and the upper channel resistance.
Fundamentally, Bank of Canada also adds some strength to CAD by holding monetary policy rate unchanged in face of weaker growth outlook.
The BoC stands pat at its key policy rate unchanged at 0.5% yesterday despite a weaker economic outlook relative to their October forecasts.
Growth for 2016 is now forecast to be just 1.4%, 0.6% lower than anticipated in the previous Monetary Policy Report (MPR). The Bank continues to see a marked acceleration in growth in 2017, to 2.4%.
Much of the near-term weakness is attributed to lower commodity prices and temporary factors, while the Bank also reiterated that "The declines in Canada's terms of trade and in the value of the Canadian dollar over the past year and a half have set in motion complex adjustments".
