Canadian Loonie Suffers against the Dollar
This afternoon, the Canadian government will release unemployment data, and the projections are bleak, with high unemployment rates expected at 1000 compared to 15k. Since the Christmas rally, the dollar has shown relative strength against the Loonie. Although it is in a bearish channel relative to the Canadian dollar, its movement has been upward within this channel recovering 0.04cts between Christmas Day and January 17. We have observed triple tops at 1.35485 USD and 1.33688 USD, indicating a defined price range, with the highs and lows being 1.35434 and 1.31761 USD respectively. If either of these triple tops are broken, we could see a bullish consolidation towards new highs or a return to the channel to test the triple support and subsequently the lows at 1.31008 USD. At the moment it seems clearly fixed in a sideways range marking the current price control point.
Divergence RSI shows a value of 40.83, almost at oversold levels, suggesting the possibility of a bullish stretch without volume or a sharp USD correction. Although current economic news does not suggest a sharp correction in the Canadian dollar, anything is possible.
Compared to the Euro, the Canadian dollar matches by showing a sideways range within a bearish channel since late January. Despite unfavorable news from the Eurozone in recent weeks, the triple bottom that began its formation at Christmas has barely lasted due to today's formation. It will be crucial to watch today's news to determine whether the Loonie weakens, although prices appear to have been discounted in advance for at least two days now. Perhaps today's news may set a new trend.
Ion Jauregui - AT Analyst
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and such should be considered a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acing on the information provided does so at their own risk.
Divergence RSI shows a value of 40.83, almost at oversold levels, suggesting the possibility of a bullish stretch without volume or a sharp USD correction. Although current economic news does not suggest a sharp correction in the Canadian dollar, anything is possible.
Compared to the Euro, the Canadian dollar matches by showing a sideways range within a bearish channel since late January. Despite unfavorable news from the Eurozone in recent weeks, the triple bottom that began its formation at Christmas has barely lasted due to today's formation. It will be crucial to watch today's news to determine whether the Loonie weakens, although prices appear to have been discounted in advance for at least two days now. Perhaps today's news may set a new trend.
Ion Jauregui - AT Analyst
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and such should be considered a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acing on the information provided does so at their own risk.
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