CAD: bearish forecasts from TD Securities

CAD: bearish forecasts from TD Securities

2020-11-24 • Updated

What happened?

USD/CAD has been falling for a few reasons. First of all, the CAD is sensitive to market sentiment. Investors were encouraged by hopes of having the vaccine soon in the USA and some European countries, and that underpinned the risky CAD and therefore drove USD/CAD down. Second, the Canadian dollar is one of the largest oil producers that’s why its price movement is closely linked to the dynamic of oil prices. WTI oil surged to August highs pushing the CAD upwards too. 

Forecasts

TD Securities claimed that “the loonie trades with too much optimism relative to fundamentals and techncials" and assured that the current risk-on sentiment will soon fade and push the Canadian dollar down. According to TD Securities, USD/CAD will rally up to 1.3300 if it reaches 1.3100.

However, the long-term forecast is more supportive for the Canadian dollar. Goldman Sachs claimed that the reopening of the global economy in 2021 will drive riskier currencies up such as the CAD and the AUD. 

Technical tips

If USD/CAD jumps above the 50-period moving average, the way to the resistance of 1.3120 and then to the next one of 1.3165 will be clear. Elsewhere, the long lower tail of the second-to-last red candle and the following long green one have created the bullish momentum for the pair in the near term. In the opposite scenario, the move below the intraday low of 1.3030 will push the pair lower to the key psychological mark of 1.3000. 

USDCADH4.png

TRADE NOW

Similar

What will move the market on September 6-10?
What will move the market on September 6-10?

Last Friday’s NFP was disappointing. The reaction of the markets was astonishing. Will it last longer? Let's find out the main trade opportunities for the upcoming week.

USD Declines on Powell Remarks
USD Declines on Powell Remarks

After multiple hawkish remarks over the past few days from non-voters members, the Federal Reserve chairman Powell surprised the markets with some dovish remarks…

S&P in the Сrosshairs
S&P in the Сrosshairs

Institutional investors speak about further growth in the stock market. In the exact market that has doubled since COVID-19 and doesn’t plan to stop. Is it possible?

Latest news

US Stock Market Recovers
US Stock Market Recovers

What happened? US stocks ended sharply higher on Thursday, May 27, after a 7-week losing streak…

What to trade on May 30-June 3
What to trade on May 30-June 3

Next week, we expect the BOC rate statement, the OPEC+ meeting, and the Nonfarm payrolls release. Let's look at the opportunities in detail! 

Deposit with your local payment systems

Be on top of your game

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.

Callback

A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

Beginner Forex book

Beginner Forex book will guide you through the world of trading.

Beginner Forex book

The most important things to start trading
Enter your e-mail, and we will send you a free Beginner Forex book

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera