Canadian Dollar Price Outlook: USD/CAD & EUR/CAD Test Support

CANADIAN DOLLAR FORECAST: USD/CAD PRICE TESTS TECHNICAL SUPPORT POST-FED, EUR/CAD JUMPS AFTER ECB

The Canadian Dollar looks like it might start to come underneath vigour following an considerable liberation in CAD cost movement over a final few weeks. Despite a 5% convene notched by a Canadian Dollar Currency Index (CXY) given a Mar 18 low, a Loonie still trades about 7% next a year-to-date high. Canadian Dollar debility given Jan has mirrored a wanton oil cost pile-up deliberation a appetite section contributes roughly 10% to Canada GDP.

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Forex for Beginners

CANADIAN DOLLAR REBOUNDED AS CRUDE OIL PRICES BOTTOMED; WILL CORONAVIRUS RECESSION RISK RESURFACE PUSH THE LOONIE LOWER?

Canadian Dollar Price Chart Forecast

Chart combined by @RichDvorakFX with TradingVie

Crude oil prices also tend to have a element impact on inflation. Seeing that a Bank of Canada ruling charge is acceleration targeting, pointy swings in wanton oil can import extremely on BOC financial process decisions. On that note, aiming to equivalent mercantile misunderstanding that stems from a coronavirus pestilence and likely unavoidable recession, a BOC slashed aim seductiveness rates this year along with several other executive banks.

Learn More – CAD Oil: Canadian Dollar and Oil Price Correlation

Downward vigour on a Loonie and Canadian economy subsided following dovish movement from a BOC and OPEC+ deal that is expected to put a building in wanton oil. While wanton oil direct woes persist and marketplace complacency builds, however, a new Canadian Dollar miscarry might shortly knowledge another breakdown. That said, USD/CAD and EUR/CAD cost movement are both responding to vital technical support levels and suggests a Canadian Dollar could be on a fork of a reversal.

USD/CAD PRICE CHART: DAILY TIME FRAME (31 DECEMBER 2019 TO 30 APRIL 2020)

USDCAD Price Chart Canadian Dollar Forecast

USD/CAD is hovering above a support section underpinned by a 1.3800 handle. Spot USD/CAD cost movement has so distant hold a Apr 13 intraday low and provides a pointer of support for Canadian Dollar bears. Although, if USD/CAD prices try to extend a rebound, a 1.4000 level, that is underpinned by a 9-day and 34-day exponential relocating averages, could benefaction headwinds.

EUR/CAD PRICE CHART: DAILY TIME FRAME (25 JANUARY TO 30 APRIL 2020)

EURCAD Price Chart Canadian Dollar Technical Analysis

EUR/CAD is also climbing as a Euro rips aloft off technical support nearby a 1.5050 cost level. Spot EUR/CAD jumped after using into a bottom Bollinger Band and reiterated a bullish rising wedge draft pattern. Additionally, it looks like EUR/CAD is on gait to imitation a bullish engulfing candlestick, which, if confirmed, provides another denote that a Canadian Dollar has started to retreat behind lower.

Keep Reading – US Dollar Chart Setups Post-FOMC: DXY Index, EUR/USD, AUD/USD

— Written by Rich Dvorak, Analyst for DailyFX.com

Connect with @RichDvorakFX on Twitter for real-time marketplace insight

CAC 40 Forecast: Index Bleeds Lower Following ECB Meeting

CAC 40 Price Outlook:

CAC 40 Forecast: Index Bleeds Lower Following ECB Meeting

The CAC 40 changed reduce on Thursday following an ECB rate decision, rounding out a eventuality circuitously a intraday lows. While a initial greeting to a eventuality was comparatively muted, successive cost movement might advise marketplace participants were unconvinced. Coupled with a flitting of pivotal eventuality risk, a 4-hour cost draft reveals a sharpened star candlestick – typically noticed as a annulment pattern.

CAC 40 Price Chart: 4 – Hour Time Frame (February – April)

CAC 40 cost draft

It would seem a candlestick’s feeling was fast fulfilled, that leads to a doubt of how distant a annulment will progress, not if. With that in mind, a index might demeanour to circuitously support around 4,516 and a projected trendline underneath if offered continues. It is still misleading if bearishness will persist, though debility opposite equity markets suggests broader risk hatred might be during hand. Therefore, if perspective weakens serve in US trading, or pivotal gain from Amazon or Apple disappoint, a CAC 40 might continue reduce and examine a summarized support.

That said, IG Client Sentiment Data reveals sell traders are overwhelmingly brief a French equity index that we typically perspective as a pointer debility might continue. However, new developments prominence a poignant boost in prolonged bearing – clouding a vigilance somewhat. The series of traders net-long is 21.83% aloft than yesterday and 3.83% reduce from final week, while a series of traders net-short is 22.59% reduce than yesterday and 15.70% reduce from final week.

Therefore, perspective information might advise cost is headed reduce in a shorter-term while remaining constructive for longer-term growth. In a meantime, follow @PeterHanksFX on Twitter for updates and analysis.

–Written by Peter Hanks, Junior Analyst for DailyFX.com

Contact and follow Peter on Twitter @PeterHanksFX

Euro Slightly Down Vs Most Majors Following ECB Decision

As expected, a European Central Bank left a refi rate during 0.00 percent and a extrinsic lending trickery rate during -0.50 percent. Following a announcement, a euro traded churned opposite a vital counterparts. While it altered small opposite a franc, it fell somewhat opposite a rest of vital counterparts. The euro was trade during 115.87 opposite a yen, 1.0557 opposite a franc, 0.8678 opposite a bruise and 1.0871 opposite a greenback around 7:46 am ET.