The Canadian Dollar Regains Momentum Over Major Peers

• 26 Jan 2018

CAD/CHF

The CAD/CHF pair has broken the lower Bollinger band and appears to be turning in a more bullish direction after significant buying pressure in yesterday’s trading. RSI confirms a momentum change, with a bounce off the 30 support level.

Impact event: Bank Of Canada Consumer Price Index data will be released 15:30 GMT+2 and will impact all CAD pairs.

EUR/CAD

The EUR/CAD pair has reached a resistance line at the 1.534 price level which also represents a market top. A spinning top candle in yesterday’s trading may have represented the top of the bullish run and certainly represents indecision, perhaps signalling that buyers lack conviction. RSI has flattened at the 70 overbought line further indicating a deceleration in momentum.

GBP/CAD

The GBP/CAD pair has broken the 1.743 resistance line to the upside, which represented a recent price high. However, the bullish move is showing signs of reversal given the asset appears to be overbought. RSI has broken and returned to test, the 70 resistance line, with an imminent break to the downside. At the same time, consistent breaks of the upper Bollinger band confirm the pair has moved beyond statistical averages and will likely return to these averages in the near-medium term.

Impact event: U.K. GDP data will be released at 11:30 GMT+2 and will impact all GBP pairs.

USD/CAD

The USD/CAD pair has reached a new low amidst a long-term downtrend. The U.S. Dollar weakness appears to be a prevailing trend that is set to continue. Despite momentum indicators confirming the bearish sentiment there appears little appetite to drive prices lower. The pair will likely remain glued to the trend line (currently at the 1.2328 price level).

Impact event: U.S. GDP data will be released at 15:30 GMT+2 which will impact U.S. Dollar pairs.