CAD: Price Delivery Suggests Strength

CAD: Price Delivery Suggests Strength

2024-02-27 • Dikemaskini

USD/CAD initially dropped to 1.3484 during the day but later rebounded above 1.3500 following a larger-than-expected decline in US Durable Goods Orders. The pair remains stuck in a short-term range as investors await the release of US Personal Consumption Expenditure Price Index (PCE) data later in the week, which could provide insights into inflation trends. On Wednesday, Canada will release Q4's Current Account data, although it may be overshadowed by the simultaneous release of the US Gross Domestic Product (GDP) report at 13:30 GMT, drawing more attention from markets.

EURCAD - D1 Timeframe

photo_2024-02-27_16-18-33.jpg

The daily timeframe chart of EURCAD shows price retracing after breaking below the previous low. The current price action is approaching the supply zone at the 88% of the Fibonacci retracement. The confluence of a trendline resistance along with the supply zone and the Fibonacci level provides a strong confirmation for a likely sell entry.

Analyst’s Expectations: 

Direction: Bearish

Target: 1.44820

Invalidation: 1.47622

GBPCAD - D1 Timeframe

 photo_2024-02-27_16-18-37.jpg

GBPCAD seems to be heading towards the supply zone for a retest. The trendline resistance provides an extra confluence for the bearish sentiment, since it aligns with the supply zone and the Fibonacci retracement zone.

Analyst’s Expectations: 

Direction: Bearish

Target: 1.25090

Invalidation:1.28263

NZDCAD - D1 Timeframe

 NZDCADDaily-2702d.png

NZDCAD on the Daily timeframe has recently broken the trendline support as well as the structure, with the Fibonacci retracement reaching as far as the 88%. I expect to see the confluence of the Fibonacci retracement level and the trendline resistance push prices lower, towards the 23% level.

Analyst’s Expectations: 

Direction: Bearish

Target: 0.82401

Invalidation: 0.83830

CONCLUSION

The trading of CFDs comes at a risk. Thus, to succeed, you have to manage risks properly. To avoid costly mistakes while you look to trade these opportunities, be sure to do your due diligence and manage your risk appropriately.

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