Futures for Canada’s main stock index rose on Monday, following positive global markets and gains in crude oil prices. First Citizens BancShares Inc’s announcement of purchasing the loans and deposits of failed Silicon Valley Bank also boosted investor confidence in the global financial system. As a result, March futures on the S&P/TSX index were up 0.4% earlier, while crude oil prices gained more than 1%. We need to however evaluate the possibility of a sustained increase or a return to the bearish movement.
USDCAD
The Daily timeframe of USDCAD is currently showing signs of bullish strength. The Moving Averages are positioned in a way that indicates a bullish trend, with the 50-Day MA within reach as an area of support. To further strengthen the bullish sentiment, we also have the Fibonacci retracement levels, the drop-base-rally demand zone, and the break of the previous high at the 1.36700 area.
Analysts Expectations:
- Direction: Bullish
- Target: 1.39300
- Invalidation: 1.35600
NZDCAD
NZDCAD is currently trading inside a descending channel and has recently been rejected from the resistance trendline of the channel. The 50 and 100-day MAs are the only things that stand between where price is at the moment, and where I expect it to go in a few days. Once price breaks through the support trendline, and the 100-Day MA, it would sail very quickly toward the 200-Day MA.
Analysts Expectations:
- Direction: Bearish
- Target: 0.83000
- Invalidation: 0.85800
CADJPY
CADJPY has made an initial reaction away from the pivot zone marked by the rectangle. It also seems to have filled the volatility gap from the opening of the new week yesterday. Based on the 76% of the Fibonacci retracement, the trendline resistance, and the Moving Averages, it is safe to expect a bearish reaction from the markets.
Analysts’ Expectations:
- Direction: Bearish
- Target: 94.400
- Invalidation: 97.300
AUDCAD
After breaking below the trendline support of the ascending channel, price can be currently considered as making a bullish retracement into the Bearish Order block (supply zone) in order to find the required liquidity and momentum to push lower.
Analysts’ Expectations:
- Direction: Bearish
- Target: 0.90600
- Invalidation: 0.91505
CONCLUSION
The trading of CFDs comes at a risk. Thus, to succeed, you have to manage risks properly. To avoid costly mistakes while you look to trade these opportunities, be sure to do your due diligence and manage your risk appropriately.
