Forex Analysis – CAD Pairs – November & December 2022

Our previous CAD Forex analysis click here

Technical Analysis

FOREX ANALYSIS: AUDCAD – Down-trending

As suggested in our previous CAD chart analysis, the AUDCAD reversed around the longer-term moving average and has since been bearish.

Price is clearly down-trending and is currently forming a swing lower. AUDCAD is finding support, so price could be due a retrace move. The moving averages are bearish and widening, signalling that the downtrend could continue.

Selling opportunities may exist around any of the key Fib levels, around the dynamic resistance of the moving averages, around the trend resistance area and around the horizontal levels at 0.8750, 0.8915, 0.8950 and 0.9095.

FOREX ANALYSIS: CADCHF – Indecisive. Possible downside?

CADCHF technical analysis — CADCHF Daily Chart

The CADCHF has been bearish.

Price is currently down-trending but CADCHF continues to look indecisive overall. CADCHF has formed lower swing highs and lower swing lows and the moving averages have crossed bearish, so the downtrend may continue. Price is ranging on higher time-frames between 0.7125-0.7800 – the range bound market may continue.

Shorting opportunities could exist around the dynamic resistance of the moving averages, around the trend resistance area and around the horizontal levels at 0.7325, 0.7485 and 0.7560. A bearish move may stall or reverse around the horizontal support levels at 0.7175 and 0.7125.

FOREX ANALYSIS: CADJPY – Up-trending

CAD pair Forex chart — CADJPY Daily Chart

As suggested in our last analysis, price has continued to be bullish and move higher.

CADJPY is clearly up-trending – price action has formed a long series of higher swing highs and higher swing lows. Price is currently bullish but is struggling to break recent highs, signalling that upside momentum could be weakening. The moving averages are bullish and steady, so the uptrend could continue.

Buying opportunities may exist around the dynamic support of the moving averages and around any of the identified horizontal levels at 107.30, 104.50, 102.20 and 98.65. A bullish move could continue to be rejected and even reverse around the recent swing high at 110.00.

FOREX ANALYSIS: USDCAD – Up-trending

USDCAD price action analysis — USDCAD Daily Chart

Price has been bullish and has swung higher, as suggested in our last Forex analysis.

USDCAD is clearly up-trending. Price is currently in a retrace move. The moving averages are bullish and widening, so the uptrend may continue. USDCAD is also up-trending on higher time-frames.

Long opportunities could exist around the dynamic support of the moving averages, around any of the key Fib levels, around the trend support area and around the horizontal levels at 1.3100, 1.3050, 1.2950 and 1.2750. A bullish move may find resistance around the recent swing high at 1.3900.

Fundamental Analysis

Interest Rates

The Bank of Canada (BOC) has raised it’s interest rate by 75bps, increasing the official bank rate to 2.5% – it’s fifth consecutive rate hike. The BOC have announced that further hikes are expected to tackle rising inflation. Short-term inflation expectations are still high.