Apr. 30, 2021
USD/CAD has been losing ground for 10 days, shedding a total of 2.55% of its value. Today looks a bit better so far – a mostly flat day so far for the Canadian Dollar ranging between 1.2323 and 1.2266 and is now at 1.2292.
This in-between state of the Canadian Dollar is reflected by market data published as Canada's GDP published today at 12:30 PM came out at 0.4, falling short of the 0.5 projections and continuing its decline from the previous 0.7 figure. Data for Canada RMPI (MoM) (Mar) was released today at 12:30 PM, suggests a downwards trend of 2.3, while previous data was 6.6. United States Pending Home Sales released earlier shows an improvement to 1.9 from the preceding data of -11.5, but falls short of the projected five.
As the day reaches an end, a chart visual study suggests the Canadian Dollar resistance level is at 1.2626. In terms of trend indicators, we can see that the MACD line is below the MACD signal line significantly, meaning the medium-term trend might turn positive. Asset volatility analysis shows that the lower Bollinger band is at 1.2296, indicating a positive move might be next. In contrast, the CCI indicator is bellow -100. When the CCI (Commodity Channel Index) is at this level, it means the price is below the average price as measured by the indicator, indicating a possible start of a new downtrend.
Overall, looking at the technical analysis landscape, it seems the Canadian Dollar might be pointing upward in the short term.
While the Canadian dollar is pretty flat so far today, mixed performances are seen elsewhere as the British Pound dropped 138 pips, making its largest single-day fall since September 2020. GBP/CAD fell below the significant 1.71 level for the first time in 4 months.