The CAD's depreciation of about 1% of its value last week after the Bank of Canada's announcement left room for monetary policy easing in the coming months. The Bank of Canada left interest rates unchanged at its October meeting, and President Poloz said the risks to the Canadian economy were on the table and it was time to justify a more favourable monetary policy as a form of insurance against all risks. USDCAD remains neutral and the likelihood of market reaction on both sides (short and long term) equals 50%.

The first Resistance is found at the 1.3150 and 1.3253 respectively. A break above the 1.3253 could possibly push the pair as high as 1.3382. In contrast, the first support is found at 1.3014 and 1.2934 respectively. If the price breaks below the 1.2934 level, it could possibly force the pair as low as 1.2811. The RSI (W) remains at the neutral to positive level and the CCI (W) closed at the oversold territory.

Source: Exclusive Capital

 

What Is Relative Strength Index – RSI?

The relative strength index (RSI) is a momentum indicator that measures the magnitude of recent price changes to evaluate overbought or oversold conditions in the price of a stock or other asset. The RSI is displayed as an oscillator (a line graph that moves between two extremes) and can have a reading from 0 to 100.

 

What is the Commodity Channel Index (CCI)?

Developed by Donald Lambert, the Commodity Channel Index (CCI) is a momentum-based oscillator used to help determine when an investment vehicle is reaching a condition of being overbought or oversold. It is also used to assess price trend direction and strength. This information allows traders to determine if they want to enter or exit a trade, refrain from taking a trade, or add to an existing position. In this way, the indicator can be used to provide trade signals when it acts in a certain way.

 

Legal Disclaimer: This article is not investment advice. The data provided is for marketing material purposes and is not intended to confuse nor guide our clients on trading decisions. Any investment activity performed is perceived to be a self-directed decision. Exclusive Capital is not liable for losses that may occur because of a decision made after reading the information published on our research page or any other media.

Risk Warning: Trading the capital markets is risky therefore further knowledge and experience may be required. Apply appropriate risk and money management always and ensure the implementation of safe leverage.

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Christos Nikolaou

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