German ZEW Survey results Expected On Tuesday
TestThe German ZEW survey is due on Tuesday 16th January and is so far the most awaited news of the first two days of this week’s trading. There is a lot of optimism in play as recent stats also show
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USD/CAD: Oil back in red ahead of API data, US Economic data shines.
By Xinyang
Oil drops ahead of API report. Both benchmarks resumed crude losing streak for the fourth consecutive session today. Currently, both benchmarks trade moderately lower, with Brent down -0.33% at $ 44.45, while WTI trades -0.68% at fresh three-month lows of $ 44.15. Oil prices fell back in the red this session as negative earnings report weighed on the sentiment surrounding European stocks and stimulated a risk off environment.
On the other hand, US shines with positive economic data. CB Consumer confidence comes in at 97.3, which is above expectations of 95.6. US New home sales also beat expectations at 592k vs 560k. Base on these data, a potential long opportunity is the USD/CAD pair.
Technical Insights
Short term (15min) chart of USD/CAD:
Trend Analysis: Bullish (50 SMA above 200 SMA).
Levels Analysis: Critical support zone at 1.31780 - 1.31850 and resistance zone at 1.32190 - 1.32450.
Takeaway: Both moving averages are showing a bullish momentum, and the price is trading in a nice bullish channel. With the positive data in the US and negative sentiment of crude oil, I expect USD/CAD to continue its upward momentum. However, there may be a probability price may pull back due to the accelerated uptrend line, break it and consolidate around the critical support zone of 1.31780 - 1.31850, before continuing its upward movement.
Long term (Daily) chart of USD/CAD:
Trend Analysis: Bearish (50 SMA below 200 SMA).
Levels Analysis: Critical support at 1.31300 - 1.31860
Takeaway: Although bearish in a long-term perspective with the 50 SMA above 200 SMA, an ascending triangle has been broken up, which can initiate a strong upward movement. According to the measure rule for price projection of trendline mirror, I expect the price to continue its ascend to the 1.38190 level.
On the other hand, US shines with positive economic data. CB Consumer confidence comes in at 97.3, which is above expectations of 95.6. US New home sales also beat expectations at 592k vs 560k. Base on these data, a potential long opportunity is the USD/CAD pair.
Technical Insights
Short term (15min) chart of USD/CAD:
Trend Analysis: Bullish (50 SMA above 200 SMA).
Levels Analysis: Critical support zone at 1.31780 - 1.31850 and resistance zone at 1.32190 - 1.32450.
Takeaway: Both moving averages are showing a bullish momentum, and the price is trading in a nice bullish channel. With the positive data in the US and negative sentiment of crude oil, I expect USD/CAD to continue its upward momentum. However, there may be a probability price may pull back due to the accelerated uptrend line, break it and consolidate around the critical support zone of 1.31780 - 1.31850, before continuing its upward movement.
Long term (Daily) chart of USD/CAD:Trend Analysis: Bearish (50 SMA below 200 SMA).
Levels Analysis: Critical support at 1.31300 - 1.31860
Takeaway: Although bearish in a long-term perspective with the 50 SMA above 200 SMA, an ascending triangle has been broken up, which can initiate a strong upward movement. According to the measure rule for price projection of trendline mirror, I expect the price to continue its ascend to the 1.38190 level.
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By Xinyang
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