USD/CAD Weekly Analysis 10 February 2017

hightrade
Comments Off on USD/CAD Weekly Analysis 10 February 2017

The Chinese trade balance showed an adjustment in the surplus at 51.35 billion, while it was expected lower at 47.90 billion. The previous result was 40.71 billion. The reason for this adjustment was the fierce rise in exports, with January’s exports having increased by 7.9%, while in December exports where at -6.2%. Imports have increased as well by 16.7%, from previously 3.1%.

UK’s manufacturing production has raised by 2.1%, beating expectations for 0.5% and from previous 1.4%. The trade balance showed that deficit was marginally lower at -10.89 Billion, from the previous reading of -11.56 Billion.

CHARTING

The crucial points are:

aaeaaqaaaaaaaap3aaaajdhknjflywywltgwnwqtngi4zc1hzjdllty5ndkwndvhogi5mq

In the chart of USD/CAD, the price, after many failed attempts to breach the 1.30200 level of support, bounced off within two positive sessions. It appreciated higher than 1.31250 level. However, it has met resistance at 1.32150 and now is trying to break lower than 1.30200 level of support. Moreover, by connecting the lower highs and the higher lows, a noticeable triangle can be formed, which possibly indicates that the price is going into tighter range, until it breaches the upper or the lower band.

Charting outcome: Neutral – Marginally bearish

INDICATORS (computerized T.A)

The crucial points are:

aaeaaqaaaaaaaaxqaaaajgzkmtmzyty5lwnjzjatndllys04mdiylty2yzq4otu1mde1oa

 

The indicators are signaling that a weak downtrend has occurred, which is possible to become weaker. The moving averages slopes have added slight bullishness, while the spread between the negative and the positive dynamic has tightened. The trend dynamic has fallen by -24.06%, whilst the market’s volatility has marginally fallen by -1.83%. Finally, the oscillators have become marginally oversold.

Indicators outcome: Marginally bearish – Neutral        

CONCLUSION

Both indicators and charting seem to confirm that the price is more likely to follow a neutral path. Should the price break lower than 1.31250 level, the next possible support could be at 1.30200 level. On the contrary, if the price appreciates higher than 1.32150 level, the 1.33000 level could be the next resistance.

%d bloggers like this: