The Canadian dollar has stabilized on Monday, as USD/CAD trades in the mid-1.24 range. The loonie took a beating last week, as the pair jumped an astounding 450 points. There are no Canadian or US releases on Monday, so with the markets not having any numbers to work with, traders can expect a quiet North American session. On Friday, Canadian releases were mixed, as Retail Sales and CPI beat their estimates, while CPI continued to decline.
Things have gone from bad to worse for the Canadian currency, which was pummeled mercilessly by the USD/CAD last week. The pair is currently trading at its highest level since April 2009. The pair took a hit late in the week following an unexpected rate cut by the Bank of Canada. The central bank lowered rates from 1.00% to 0.75%, citing weak inflation and the falling price of oil, which is Canada’s biggest export.
USD/CAD for Monday, January 26, 2015
USD/CAD January 26 at 16:20 GMT
USD/CAD 1.2431 H: 1.2475 L: 1.2414
- USD/CAD has shown little movement during the day. The pair tested resistance at 1.2469 in the European session.
- 1.2469 is a weak resistance line. 1.2543 is stronger.
- 1.2387 is an immediate support line.
- Current range: 1.2387 to 1.2469
Further levels in both directions:
- Below: 1.2387, 1.2261, 1.2190, 1.2096 and 1.1975
- Above:1.2469, 1.2543, 1.2680 and 1.2761
OANDA’s Open Positions Ratio
USD/CAD ratio is pointing to gains in short positions on Monday. This is consistent with the pair’s movement, as the Canadian dollar has recorded small losses. The ratio has a majority of short positions, indicative of trader bias towards the Canadian dollar moving to higher ground.
- There are no US or Canadian releases on Monday.
OANDA MarketPulse Nominated for FXstreet’s 2015 Forex Best Awards
We are pleased to share the news that FXstreet – Europe’s oldest forex trading portal, published online in more than 50 countries – has nominated your MarketPulse team for the “Best Sell-Side Analysis Team” award again this year (the winners in 2014!), as well as in the category of “Best Analysis”.
The annual Forex Best Awards highlight the best analysis, educational content, and contributors on its website from the preceding year. It is a tremendous honour to be considered for this industry accolade out of the thousands of top tier banks and financial blogs online.
However, in order to win these important awards, we need your help – we need you to vote for us.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.