USDCAD showing more weakness

A failed rebound to the upside has put the pair back into bear territory.

Downtrend 1

The US Dollar was bearish against most of its major pairs on Tuesday with the exception of the NZD and AUD. On the US economic data front, Housing Starts rose to 1,415K on month in September (1,465K expected), from a revised 1,388K in August. 

On Wednesday, the Mortgage Bankers Association's Mortgage Applications data for the week ending October 16th is expected. Finally, the Federal Reserve is anticipated to release its Beige Book.  

The Euro was bullish against all of its major pairs. In Europe, ECB current account excess increased to E19.9B in August from E17B in July.. The German Federal Statistical Office has posted PPI for September at +0.4% on month (vs -0.1% expected).

The Australian dollar was bearish against all of its major pairs. 

The forex pair with the largest move on Tuesday was the USD/CAD which fell 62 pips to 1.313. The pair failed to post a significant rebound after breaking above its 20 and 50 day moving averages. The 50-day moving average is now acting as key resistance on the decline. Look for a break of short term support at the 1.31 level and a continuation lower towards 1.30 to test September lows.. 

Source: GAIN Capital, TradingView

Happy Trading.

More from Forex

From time to time, StoneX Financial Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.

As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.