Photo - Andreas Zanin
Andreas Zanin
Analysis | March 10, 2021

Outlook and forecast: Canadian Dollar

The Canadian Dollar in our view is a sell v the USD, JPY, and EUR. The Canadian Dollar has benefited from the market expecting a strong economic recovery going forward which has boosted commodity prices which has seen commodity currencies generally firm but we think the good news is in the price for the CAD and we expect to see some a correction going forward.

In terms of the 3 setups below, we are long-term bullish USD/CAD but in terms of CAD/CHF and EUR/CHF, we view these as shorter-term swing trades to correct the CAD’s overbought condition. Our view of the key technical levels of support and resistance to look out for on the charts below…

USD/CAD

On the chart below we can see the USD trading in low volatility above the 1.2600 level and we expect a breakout above this week’s high above 1.2700 to trigger follow-through buying on higher volatility to the upside – If we were to move back through 1.2600 we would view the USD as a buy back above the level with a stop behind chart lows.

EUR/CAD

In terms of technical trade set-ups, the one below is one of our favorites: We have a strong move down on high volatility and moved outside of the outer Bollinger band and we have now moved back within it and see the EUR as a buy with a stop back behind the 1.500 level – We are looking for a move up to resistance indicated to correct the oversold condition.

CAD/CHF

After a strong move up on high volatility yesterday we saw a move above 0.7400 and a close back below the level. We think this could be the exhaustion of buying and we should see a correction to the downside. We view the CAD as a sell below today’s low or if we rally back to 0.7400 view it as a sell on weakness into the level. We are looking for a move to at least 0.7200 to correct the CAD’s overbought condition.

 

 

 

Research provided by LearnCurrencyTradingOnline.com

The given data provided contains additional information, forecasts, analysis and market reviews published on the Key to Markets website.

Before making any investment decisions, you should know that:

– Key to Markets publishes analysis of any kind solely for information purposes and such analysis should not be construed as investment advice or a solicitation to buy or sell any financial instruments including without limitation CFDs.

– Key to Markets will not be liable for any loss or damage, which may arise, directly or indirectly from use of or reliance on the data provided by Key to Markets.

– Whilst all reasonable efforts are made to ensure that all content sources are reliable and that all information is presented, as far as possible, in a comprehensible, timely, accurate and complete manner, Key to Markets does not guarantee the accuracy or completeness of any information contained in the analysis.

– Past performance is not a guarantee of future results.

Latest Article
Improve your trading with a True ECN Broker
Trading account overview