TriumphFX – Forex Analysis – CAD Pairs – April, May & June 2022


Previous analysis… https://analysis.tfxi.com/2021/12/23/triumphfx-forex-analysis-cad-pairs-january-february-march-2022/

AUDCAD – Daily Chart – Potential uptrend? Market indecision?

AUDCAD Daily Chart

The AUDCAD has been bullish.

Price action has formed a higher swing high and has broken key resistance levels, signalling a potential uptrend. Price is currently in a retrace move. AUDCAD has formed a bullish channel. The moving averages are tightening and moving sideways, suggesting potential market indecision. Price is also looking a little indecisive on higher time-frames.

Buying opportunities may exist around the dynamic support of the moving averages, around the bullish channel support area and around the horizontal levels at 0.9100, 0.8970 and 0.8915. A bullish move could be rejected or reverse around the channel resistance area and around the horizontal levels at 0.9300, 0.9350, 0.9400, 0.9530, 0.9720 and 0.9900.

The Bank of Canada (BOC) has raised it’s interest rate by 0.25% to 0.50%. The BOC are expecting economic indicators to continue to improve, though the war in Ukraine may have an impact on economic growth. A rate increase is currently expected mid-2022. Inflation targets continue to be a priority and the BOC expect inflation to continue to be elevated during 2022.

The Reserve Bank of Australia (RBA) continues to keep the official interest rate at the record low of 0.10%. The rate is could stay the same for the near future – possibly until 2024. This is due to global uncertainties post COVID and the war in Ukraine. The unemployment is expected to fall throughout the remaining of 2022.

CADCHF – Daily Chart – Clear indecision

CADCHF Daily Chart

As suggested in our last CAD analysis, the CADCHF reversed around 0.7120 and has been indecisive.

Price continues to lack trend direction and move in a sideways direction. Price action has formed a range at 0.7120-0.7510. The daily moving averages confirm the market indecision – they have been moving sideways. The CADCHF is also indecisive on higher time-frames, providing no clear indication of future price direction.

Trading opportunities could exist around the moving averages and around any of the horizontal levels at 0.7120, 0.7175, 0.7340, 0.7475 and 0.7500.

The Swiss National Bank (SNB) continues to keep rates at the all-time low of -0.75%. The SNB will continue to keep ultra-loose monetary policy in order to provide support to the Swiss economy. The bank continues to intervene with Foreign Exchange markets with regard to temper the value of the Swiss Franc.

The Bank of Canada (BOC) has raised it’s interest rate by 0.25% to 0.50%. The BOC are expecting economic indicators to continue to improve, though the war in Ukraine may have an impact on economic growth. A rate increase is currently expected mid-2022. Inflation targets continue to be a priority and the BOC expect inflation to continue to be elevated during 2022.

CADJPY – Daily Chart – Up-trending. Potential retrace move?

CADJPY Daily Chart

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

CADJPY is clearly up-trending – price action has formed a long series of higher swing highs and higher swing lows. Price is currently forming a swing higher. The current move is looking a little over-extended, suggesting a potential retrace move. The moving averages signal that the upside trend could continue – they are bullish and steady.

Long opportunities may exist around the dynamic support of the moving averages, around the trend support area and around the horizontal levels at 92.80, 91.70, 89.75 and 87.75.

The Bank of Canada (BOC) has raised it’s interest rate by 0.25% to 0.50%. The BOC are expecting economic indicators to continue to improve, though the war in Ukraine may have an impact on economic growth. A rate increase is currently expected mid-2022. Inflation targets continue to be a priority and the BOC expect inflation to continue to be elevated during 2022.

The Bank of Japan (BOJ) continues to keep interest rates at the record low of -0.10%. The Japanese economy is making a steady but moderate recovery from the COVID crisis. Inflation is a concern though, especially with the rising prices of energy and raw materials.

USDCAD – Daily Chart – Indecision

USDCAD Daily Chart

USDCAD has been moving sideways.

Price has been choppy and indecisive. Price action is forming a symmetrical triangle consolidation pattern, suggesting potential breakout trades. The moving averages are moving sideways – confirming the current indecision.

Trading opportunities could exist around the diagonal support and resistance levels, around the moving averages and around any of the identified horizontal levels at 1.2040, 1.2325, 1.2495, 1.2890 and 1.2935. Breakout trades could exist when USDCAD closes out of the consolidation area.

The Federal Reserve have stated that they will do everything they can to support the US economy and to help a robust recovery post COVID. The funds rate has been raised by 0.25% to 0.50%. The Fed current plans to raise interest rates each meeting until the end of the year, forecasting the rate to be around 1.9% by the end of 2022. The war in Ukraine is likely to increase inflation pressures on the US economy.

The Bank of Canada (BOC) has raised it’s interest rate by 0.25% to 0.50%. The BOC are expecting economic indicators to continue to improve, though the war in Ukraine may have an impact on economic growth. A rate increase is currently expected mid-2022. Inflation targets continue to be a priority and the BOC expect inflation to continue to be elevated during 2022.

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