USDCAD Weekly Locks in Higher Trough


Weekly Chart Analysis

The USDCAD has charted a higher trough (HT). This is a show of strength and lays the platform for a potential higher peak for the currency pair. Last week's candle has a higher low than the previous week and closed above the previous week's high (green horizontal line).

The weekly RSI is also above 50 (green rectangle). This is is the bullish side of the indicator. The longer the RSI maintains on this side, the greater the chance of positive momentum supporting higher USDCAD prices.

One of the reasons that the CAD is showing relative weakness is that the Canadian economy is tracking below the Bank of Canada's expectations. This suggests that the BoC may keep rates on hold despite sticky inflation.

GDP for the month of July was flat, showing 0% growth, against a forecast for 0.1% m/m growth. This was after a 0.2% decline for June.

Daily Chart Analysis

The USDCAD daily chart has developed bullish signs. Its green 5-day EMA has crossed bullishly above its 10-day EMA (black ellipse). The EMAs also look to be developing angle and separation to the upside. The daily RSI has pushed above 50 (green rectangle), into the indicator's bullish territory. The longer it maintains on this side of 50, the greater the chances that the daily chart appreciates further.

Russell Shor

Senior Market Specialist

Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.

${} / ${getInstrumentData.ticker} /

Exchange: ${}

${} ${getInstrumentData.divCcy} ${getInstrumentData.priceChange} (${getInstrumentData.percentChange}%) ${getInstrumentData.priceChange} (${getInstrumentData.percentChange}%)

${getInstrumentData.oneYearLow} 52/wk Range ${getInstrumentData.oneYearHigh}

Any opinions, news, research, analyses, prices, other information, or links to third-party sites contained on this website are provided on an "as-is" basis, as general market commentary and do not constitute investment advice. The market commentary has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and it is therefore not subject to any prohibition on dealing ahead of dissemination. Although this commentary is not produced by an independent source, FXCM takes all sufficient steps to eliminate or prevent any conflicts of interests arising out of the production and dissemination of this communication. The employees of FXCM commit to acting in the clients' best interests and represent their views without misleading, deceiving, or otherwise impairing the clients' ability to make informed investment decisions. For more information about the FXCM's internal organizational and administrative arrangements for the prevention of conflicts, please refer to the Firms' Managing Conflicts Policy. Please ensure that you read and understand our Full Disclaimer and Liability provision concerning the foregoing Information, which can be accessed here.

Past Performance: Past Performance is not an indicator of future results.

Spreads Widget: When static spreads are displayed, the figures reflect a time-stamped snapshot as of when the market closes. Spreads are variable and are subject to delay. Single Share prices are subject to a 15 minute delay. The spread figures are for informational purposes only. FXCM is not liable for errors, omissions or delays, or for actions relying on this information.