USD/CAD - H4
The pair maintains its positive undertone and runs its third straight profitable day, managing to extend this week's gains into new monthly highs.
Wednesday's heightened Canada CPI Inflation (Core reading at 3.8% y/y vs 3.7% prior) could not help the Canadian currency, which could not take advantage of the US Dollar's demise either.
Big drop in oil price amidst talks and reports for coordinated release of strategic petroleum reserve by major oil producers had a detrimental effect, sending USD/CAD back above its 200Day EMA on Wednesday.
Today it extends gains and eyes 1.2676, which can open the door for a greater advance towards the descending trendline from this year's highs at around 1.2790.
On the other hand, the pair's previous daily close above the 200Day EMA had been short-lived and a pull back below this level (1.2580-70) could be in the cards. This would make it vulnerable again to the 200H4 EMA, but a catalyst would be required for broader losses towards 1.2400.
Investors will be monitoring the situation around Oil, while awaiting tomorrow's Retail Sales form Canada.
Past Performance: Past Performance is not an indicator of future results.
Senior Market Specialist
Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. He has a long time presence at FXCM, as he joined the company in 2011. He has served from multiple positions, but specializes in financial market analysis and commentary.
With his educational background in international relations, he emphasizes not only on Technical Analysis but also in Fundamental Analysis and Geopolitics – which have been having increasing impact on financial markets. He has longtime experience in market analysis and as a host of educational trading courses via online and in-person sessions and conferences.