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CAD Weekly Forecast – Get Ready For Mixed Results

CAD Weekly Forecast – Get Ready For Mixed Results

A light economic calendar means that Loonie traders will likely turn to countercurrency events and broad market themes for direction. Will we see the

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A light economic calendar means that Loonie traders will likely turn to countercurrency events and broad market themes for direction.

Will we see the Loonie all over the charts in the next few days?

Here are potential catalysts you might want to pay attention to:

BOC’s business outlook survey (Jan 11, 2:30 pm GMT)

  • The Bank of Canada (BOC)’s quarterly report is the only economic data on tap, so traders will pay closer attention than usual at the release
  • Watch out for major changes in the BOC’s stances. The central bank currently believes that the economy will contract in Q1 2021 and have made some murmurs about the Loonie’s strength

Crude oil demand

  • The Black Crack is one of Canada’s biggest exports, so any headline that might affect its demand can influence CAD’s price action
  • Rising coronavirus cases around the world can lead to renewed lockdown efforts and a longer wait for economic recovery
  • Vaccine updates and stimulus prospects can prop up high-yielding bets like crude oil and the Loonie
  • Top-tier releases from other major economies, such as Germany and the U.K.’s GDP reports, China’s trade balance, and Uncle Sam’s retail sales reports, can cause intraday fluctuations among major CAD pairs

Technical snapshot

  • Stochastic considers CAD/JPY “overbought” on the daily time frame
  • CAD is “oversold” against its fellow comdolls AUD and NZD
CAD Forex Pairs Stochastic from MarketMilk
CAD Forex Pairs Stochastic from MarketMilk
  • EMAs reflect the Loonie’s short-term demand across the board except against the U.S. dollar
  • CAD is still below the 200 EMA against AUD, CHF, EUR, GBP, and NZD
  • The Loonie is seeing short-term bearish pressure against the dollar
CAD Forex Pairs EMAs from MarketMilk
CAD Forex Pairs EMAs from MarketMilk
  • CAD was most volatile against the safe-havens and the Aussie in the last seven days
CAD Forex Pairs Volatility from MarketMilk
CAD Forex Pairs Volatility from MarketMilk

Missed last week’s price action? Read CAD’s price recap for Jan. 4 – 8!

This post first appeared on babypips.com

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