Market News

USD/CAD: Canadian Dollar Faces Bearish Pressures

USD/CAD

Canadian Dollar faces challenges against USD; bearish sentiment prompts concerns. USD/CAD rally observed, indicating potential future shifts.

The Canadian Dollar is currently facing a challenging period against the USD, marking its most significant decline since mid-February. USD/CAD has surged by approximately 1.8 percent, pushing the Canadian Dollar towards its worst two-week performance against the US Dollar in months. A noteworthy trend accompanying this decline is the increasing downside exposure among retail traders, evident in IG Client Sentiment (IGCS), a widely used contrarian indicator.

USD/CAD Sentiment Analysis – Bullish

The IGCS data reveals that only 27% of retail traders hold a net-long position on USD/CAD (US Dollar/Canadian Dollar). This prevailing bearish sentiment implies a potential continuation of price decline, supported by a 1.77% increase in downside exposure compared to yesterday and a substantial 29.04% surge from the previous week. These shifts indicate a robust bullish outlook considering recent changes and overall market exposure.

Current Sentiment: Bullish

Client Positioning: 73% net short

Impact on Price Action

Analyzing, USD/CAD has successfully broken above the crucial 1.3668 inflection zone established in April of this year. However, as the exchange rate enters Thursday’s European trading session, it appears to be heading lower. Recent gains have occurred alongside negative Relative Strength Index (RSI) divergence, suggesting a fading upward momentum, which sometimes precedes a market reversal.

Despite this, historical data indicates that the 50-day Moving Average has consistently provided support, maintaining an overall bullish bias. In a substantial market downturn, attention might shift to the 61.8% Fibonacci retracement level of 1.3568. Alternatively, further upward movement would draw focus to the March high of 1.3862, indicating potential future shifts in USD/CAD’s trajectory. Keep yourself informed to ensure well-considered decisions in your trading activities.

Happy Trading!

Stay informed about the Latest Market News by visiting our YouTube Channel for comprehensive Forex analysis and insights.

Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Our Newsletter

Subscribe to ForexPropNews Trading Newsletters

Receive the best-curated content by our editors for the week ahead.

Mini Charts

Fidelcrest video review

Play Video

Related Articles

EUR/GBP Struggles for Momentum as Eurozone Growth Falters

German GDP fell by 0.3% in Q4 2023, while EUR/USD tests 200-SDMA...

Market Alert: Levels to Watch for EUR/USD, GBP/USD, Gold

US Dollar maintains bullish momentum amid anticipation of core PCE data; EUR/USD,...

GBP/NZD: Choppy Price Action before a Breakout

GBP/NZD- Technical Analysis- H4 Chart The chart shows that the price has...

CHF/JPY: Bull Has an Edge

CHF/JPY – Technical Analysis- H4 Chart The chart shows that the price...

Featured educational content

EXPLORE MORE

Featured educational content

New to Forex? Learn to Read Charts Like a Pro

Dive into forex trading basics: chart reading, candlesticks, technical indicators, timeframes, currency pairs. Start your journey to trading success today!

Video: How I Re-Programmed My Mind to be a Consistent Trader (Thanks to The Wolf of Wall Street)

How I Re-Programmed My Mind to be a Killer Trader (Thanks to The Wolf of Wall Street)

Video: This Invisible Trading Indicator Tells you What Day Trade (Not Just Price)

This Invisible Trading Indicator Tells you WHEN to Trade (Not Just Where)

Technical Analysis: Chart Patterns and Indicators for Profitable Investments

Navigate stocks with confidence using chart patterns like Head and Shoulders, indicators such as MACD, and tools like trendlines. Master technical analysis for...

Latest News

Learn to Read Charts
Educational Content

New to Forex? Learn to Read Charts Like a Pro

Dive into forex trading basics: chart reading, candlesticks, technical indicators, timeframes, currency pairs. Start your journey to trading success today!

EUR/GBP Struggles
Market News

EUR/GBP Struggles for Momentum as Eurozone Growth Falters

German GDP fell by 0.3% in Q4 2023, while EUR/USD tests 200-SDMA resistance amid mixed economic data.

Copyright © 2023 Forex Prop News. All Rights Reserved.