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    Canadian Dollar Price May Reverse Versus USD, Yen at Risk Next?

    Abstract:The Canadian Dollar may be getting ready to reverse against the US Dollar after increasingly bearish USD/CAD technical signals. Ahead, the Yen may weaken as AUD and NZD gain.

      Asia Pacific Market Open Talking Points

    •   Canadian Dollar outperformed alongside the British Pound on Friday

    •   USD/CAD could be inching closer towards a reversal of its uptrend

    •   Asia Pacific equities may follow Wall Street higher as Yen weakens

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      The sentiment-linked Canadian Dollar outperformed against its major counterparts on Friday as risk aversion cooled into the end of the week. Canadas benchmark TSX Composite rose about 0.9 percent as Wall Street continued trimming losses from Wednesday when the Dow Jones Industrial Average experienced its worst performance in a single day since 2018.

      The rosy mood in financial markets, especially from North America, followed rising bets of quantitative easing out of Europe and fading concerns of a “no-deal” Brexit that lifted the British Pound as well. In the US, we saw fading intensity in the inversion of the 10-year and 3-month yield curve. The United States is Canadas largest trading partner and fading concerns of a recession in the former could boost CAD.

      Canadian Dollar Technical Analysis

      Taking a closer look at USD/CAD reveals increasingly bearish signals that may reverse the near-term uptrend from the middle of July. A bearish Evening Star candlestick pattern formed under resistance (1.3318 – 1.3345) as negative RSI divergence emerged. The latter shows fading upside momentum that can at times precede a reversal. This places the focus on rising channel support (parallel red lines below).

      USD/CAD Daily Chart

    Canadian

      Chart Created Using TradingView

      Mondays Asia Pacific Trading Session

      With that in mind, a relatively quiet economic docket to begin the new trading week during Asia Pacific hours places the focus on risk trends absent sudden updates on the trade war front. APAC equities may echo gains from Fridays Wall Street trading session, perhaps further pressuring the anti-risk Japanese Yen. Meanwhile, the pro-risk Australian and New Zealand Dollars may aim cautiously higher

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    • United Arab Emirates Dirham
    • Australia Dollar
    • Canadian Dollar
    • Swiss Franc
    • Chinese Yuan
    • Danish Krone
    • Euro
    • British Pound
    • Hong Kong Dollar
    • Hungarian Forint
    • Japanese Yen
    • South Korean Won
    • Mexican Peso
    • Malaysian Ringgit
    • Norwegian Krone
    • New Zealand Dollar
    • Polish Zloty
    • Russian Ruble
    • Saudi Arabian Riyal
    • Swedish Krona
    • Singapore Dollar
    • Thai Baht
    • Turkish Lira
    • United States Dollar
    • South African Rand
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