USDCAD Falls on Decline Effect Against USD

Andrew Fischer · 07 Dec 2023 5.4K Views

Daily Market Movement:

Top Movements (9:30 AM, GMT+7)

Popular Instrument  (9:30 AM, GMT+7)


Technical Analysis

Signal: Continuation Bullish / Upward

Demand Levels: 2038.71 - 2031.90

The prediction for Gold for this evening tends toward a correction. However, even with this correction, there's an anticipated significant continuation of the upward trend. This is because of the Fed's influence, which seems inclined to hold interest rates, signaling a dovish stance before the release of the "Non-Farm Payroll" news. This encourages investors to take positions before the news release. The upward movement is also influenced by the price hitting support levels and the potential for further price increases. Additionally, the National Automated Data Purchasing (ADP) employment report released on Wednesday (12/06) showed that private sector employment in the US grew by 103,000 workers in November. This figure is lower than the revised decrease of 106,000 workers in October and significantly below market expectations of 127,000 workers. In summary, Gold is predicted to have sustained upward movement today as per this plan and analysis, supported by candlestick analysis and technical analysis.


Technical Analysis

Signal: Bearish Reversal / Downward

Supply Levels: 147.338 - 147.182

The prediction for the USD suggests a significant likelihood of decline, potentially continuing its downward trend in the long term. This will consequently strengthen the Yen over an extended period, given the prolonged USD decline. Additionally, indications of the decrease in US bond yields also show a considerable drop. Today, the market remains unsettled ahead of key US labor data, while the Yen rises as Bank of Japan Governor Kazuo Ueda provides more signals about potential changes in the ultra-dovish stance of the bank.

The Dollar has also shown signs of decline, coupled with the recent rise in the Yen, as the market awaits further signals on when the Federal Reserve plans to begin cutting interest rates. The overall trend also supports USD weakness as, according to the chart analysis, the USD has entered a prolonged and sustained downward trend, consequently strengthening the Yen.


Technical Analysis

Signal: Bearish Reversal / Downward

Supply Levels: 1.36005 - 1.36860

Prediction for the USD against the Canadian dollar tends to reverse or continue its decline against the USD. This is still influenced by the ongoing downward trend of the USD, which is expected to persist for now. This downward trend in the USD will likely strengthen the Canadian Dollar, supported by news related to the Canadian Dollar, such as the upcoming release of 'Building Permits' tonight, predicted to show strength for the Canadian Dollar based on data indicating signs of strengthening in that area, potentially leading to its appreciation. The overall trend indicates the continuation of the USD's decline and the prolonged strengthening of the Canadian dollar. This analysis prediction is supported by Candlestick and trend analysis.

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