Technical Analysis 09.01.2019

USDCAD

The pair is in downtrend due to the weaker USD in anticipation of publication of the Fed’s December monetary policy meeting minutes and today’s meeting of the Bank of Canada concerning interest rates. The pair has the potential for decline if the Canada’s regulator indicates its intention to continue raising rates, while the Fed, on the contrary, signals a possible pause in interest rate hikes.

The price is below the middle Bollinger band, below SMA 5 and SMA 14. RSI is in the oversold territory and is moving horizontally. Stoch have also entered the oversold zone.

Trading recommendations:

If the pair remains below 1.3265, it may go further down to 1.3160 if the news are favorable for the CAD.