USDCAD Trade Alert
We are looking at the USDCAD this morning.
Strategies
Long Term USDCAD Analysis Brief
Long Term Analysis Brief indicate USDCAD’s downward movement from 1.0055 extends to as low as 0.9824. Further decline could be seen after a minor consolidation, and next target would be at 0.9700 area. Resistance is at 0.9900, as long as this level holds, the downtrend will continue.
Daily Energy Report
Oil markets may continue their sideways trend this week, as the trade continues to face pressure from a lack of progress on the fiscal cliff. Background pressure will remain in effect from growing domestic oil production, elevated oil inventories, and last week’s hold at the 50-day moving averages in Brent and WTI.
Monday’s FOREX Market Analysis
AUDUSD has formed a cycle top at 1.0585 on 4-hour chart. Sideways movement in a range between 1.0500 and 1.0585 would likely be seen. Key support is located at the lower line of the price channel, as long as the channel support holds, the price action from 1.0585 is treated as consolidation of the uptrend from 1.0287, and another rise towards 1.0624 (Sep 14 high) could be expected after consolidation
Long Term EURUSD Analysis Brief
Long Term AUDUSD Analysis indicates EURUSD breaks above 1.3171 resistance, suggesting that the uptrend from 1.2042 has resumed. Further rise could be expected next week, and next target would be at 1.3400 area.
Daily Energy Report
Oil prices created an inside-day in WTI yesterday and both Brent and WTI again had trouble with their 50-day moving averages. Those technicals may offer pressure again in today’s trade, where the market will also be weighed down by continued growth in U.S. oil production, growth in oil stocks, building gasoline inventories, and generally weak demand.
FOREX Market Analysis
Being contained by 1.0624 (Sep 14 high) resistance, AUDUSD pulls back from 1.0585, suggesting that a cycle top is being formed on 4-hour chart. Range trading between 1.0500 and 1.0585 would likely be seen in a couple of days. As long as the channel support holds, the fall would possibly be consolidation of the uptrend from 1.0287, and another rise to test 1.0624 resistance is still possible.
Daily Energy Report
Oil prices rallied nicely in yesterday’s trade but once again had trouble getting above the 50-day moving averages in WTI and Brent. Today’s trade could witness a similar disposition, as the general reaction by risk markets yesterday to “bullish” news from the Fed was to finish either lower on the day (as equities did) or significantly below the day’s highs (as energies and precious metals did).
FOREX Market Analysis
USDCAD stays below a downward trend line on 4-hour chart, and remains in downtrend from 1.0055, and the fall extends to as low as 0.9844. Further decline could be expected after a minor consolidation, and next target would be at 0.9800 area. Initial resistance is at 0.9880, and the key resistance is located at the downward trend line, only a clear break above the trend line resistance could signal completion of the downtrend.
Grains Commentary
Rice_GrainsThe overnight markets are rolling over as the morning is progressing as once again there is not much of any bullish influences in any market so far. The beans are down 2-4 cents, meal has lost $1, oil is down 5-10 points, corn is down 3-4 and wheat is down 5-6.