FxWirePro: NZD/JPY Interim Rallies Seem Deceptive, Major Downtrend Still Intact In Falling Wedge – Trading & Hedging Setup
FxWirePro: USDCAD Daily outlook
USDCAD is consolidating in a narrow range between 1.37155 and 1.36473 for the past three days. The intraday trend is still bullish as long as 1.3600 holds. The Fitch has downgraded Canada's Long-Term Foreign-Currency Issuer Default Rating (IDR) to 'AA+' from 'AAA'. The surge of more than 240000 new cases in the U.S is putting pressure on commodity currencies such as Canadian, Australian dollar. It hits an intraday high of 1.36994 and is currently trading around 1.36958.
WTI Crude oil has declined after a minor uptick to $39.87. The optimism due to positive economic data globally has offset by rising Corona cases. The trade war between the US and China also preventing oil prices from upside. Any break above $41.62 confirms further bullishness.
Technically, significant support stands at 1.3630, and any violation below targets 1.3580/1.35400/1.34808/1.3450 (61.8% fib). The near term resistance is at 1.3720 (trend line resistance), an indicative break beyond will take the pair to the next level till 1.3780/1.3830.
It is good to buy on dips around 1.3680-825 with SL around 1.3630 for the TP of 1.3800.