• Latest
  • Trending
USDCAD

USD/CAD bears struggle to maintain the upper hand as dollar extends bullish correction

November 12, 2020
Food Shortage Olubadan

Food Shortage: Olubadan Calls On FG, Govs To Adopt Irrigation Farming

January 2, 2021
E Commerce Indonesia

E-commerce platforms tap into Indonesia’s thriving sharia economy

December 29, 2020
Nigeria Economy Money

Nigeria will need to borrow more and that threatens fiscal flexibility

December 28, 2020
Binance Bitcoin

Binance launches bilateral Bitcoin European options

December 28, 2020
LiteForex Logo

Merry Christmas! 25/12/2020

December 25, 2020
Woman in Africa

Africa CDC: New virus variant appears to emerge in Nigeria

December 24, 2020
Bitcoin Africa Crypto

Bitcoin Events’ Blockchain Africa Conference Returns to Johannesburg in March

December 23, 2020
  • About
  • Privacy & Policy
  • Contact
No Result
View All Result
Brokers Index
Saturday, March 6, 2021
Brokers Index
No Result
View All Result
Home Market Watch Forex

USD/CAD bears struggle to maintain the upper hand as dollar extends bullish correction

Canada GDP grew 4.5% in May, followed by a further 5% (preliminary estimate) increase in June

November 12, 2020
in Forex, Market Watch
Reading Time: 2min read
0
USDCAD

USDCAD

  • USD/CAD is on track to match the daily lows last seen in February 2020.
  • Bears need to hold below current 15 min resistance and break below 1.3270.
  • There is a focus on the price of oil, geopolitics and the US dollar’s recent correction. 

USD/CAD bears are having a hard time taking out key levels on the way to the Feb lows as the greenback firms

Recent weakness in the US dollar had been exacerbated by a significant buildup of net short speculative positions, although real yields have firmed on the back of Friday’s move which has breathed some life back into the greenback.

At the same time, there is a large repositioning taking place in the precious metals which can support the dollar at this juncture as well.

ADVERTISEMENT

However, there are many uncertainties about the effectiveness of a new round of US fiscal stimulus or even whether it can be delivered any time soon. This in itself is a positive for the dollar, as it can collect a safe-haven demand.

Meanwhile, the loonie has firmed in the past month, riding a backdrop of upside economic surprises and stronger commodity prices.

Canada GDP grew 4.5% in May, followed by a further 5% (preliminary estimate) increase in June

The Canadian economy kept rebounding and ongoing positive news on the data side may form a base for additional gains.

Next week is not offering catalysts data-wise in Canada, so focus will stay on oil prices and the dollar as well as geopolitical developments driving risk sentiment.

For energy markets, the supply-side is proving supportive.

In the shale patch, firms have shifted their production profiles, providing tailwinds to crude oil prices as the bullish case for output growth grows more likely.

USD/CAD levels

Chart
Chart

In the above 15-chart, the bulls are stepping in to defend territory towards the Feb lows target area.

A subsequent breach of the upside structure opens risk all the way back to higher.

Source: FXSTREET

Tags: BearsBullsFiscal StimulusForexGDPMarket WatchUSDCAD
Share1Tweet1ShareSendShare
ADVERTISEMENT

Insights

Bitcoin Africa Crypto

Bitcoin Events’ Blockchain Africa Conference Returns to Johannesburg in March

December 23, 2020
India Economy

The Indian economy is bouncing back | Opinion

December 8, 2020
Professional Trader

16 Technical Analysis Secrets for Boosting Your Trading Skills

November 29, 2020
Trader Lifestyle Tips

A Day in the Life of a Professional Forex Trader

November 27, 2020
Trading Account Protection

5 Tips to Protect Your Brokerage Login Credentials from Hackers

November 15, 2020
Brokers Index

Copyright © 2020 brokersindex.com

Navigate Site

  • About
  • Privacy & Policy
  • Contact

Follow Us

No Result
View All Result
  • Brokers News
  • Market Watch
    • Commodities
    • Cryptocurrency
    • Economy
    • Forex
    • Politics
    • Science
    • Stock Markets
    • Technology
    • World
  • Insights
    • Investing Adviser
    • Lifestyle
    • Trading Tips
  • Focus
    • Case Study
    • Editors Picks
    • Famous Failures
    • Success Stories

Copyright © 2020 brokersindex.com

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.