CAD Climbing On A New NAFTA Deal

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CAD Climbing on a New NAFTA deal, GBP living on a “Brexit deal” Prayer, EURO may bounce soon

  • CAD is strengthening to a 4-month high as US and Canada reached a new NAFTA (USMCA) deal
  • GBP is living on a Brexit deal prayer, as UK agreed to compromise on a border issue with Irish Government
  • USD still flying the flyers, yet the move is controlled and now being traded at just below 95.
  • RSI divergence hints a corrective bounce may be in the cards for EUR.

CAD Technical outlook

CAD is strengthening to a fresh 4-month high after US and Canada reached an agreement on a much-spoken NAFTA deal. NAFTA deal is now being known as USMCA. In reaction to the announcement, USD/CAD reacted pretty preemptively and CAD proactive powerplay comes in to the show, as USD/CAD is now being traded at 1.2814. Though, eyes will be on the further gain of CAD as BoC rate decision is forthcoming. Although a rate hike is anticipated, a cautious move should come in to play.

USD/CAD daily chart (August 2017- October 2018)

USD CAD daily chart 02-10-2018

GBP technical outlook

GBP risk remained elevated and the newswire source report noted that the UK might be willing to compromise over the Ireland border issue to reach a Brexit deal. This news alone had moved the GBP and GBP position remained almost unchanged, yet we are watching a 30-pips drop from that in just 6 hours, as the USD started to climb again. Right now, GBP is trading at 1.3014 and we are eyeing a towards a positive breakthrough, as UK is keen to reach a Brexit deal.

GBP/USD daily chart (September 2017- October 2018)

GBP USD daily chart 02-10-2018

EUR technical outlook

Yet again, EUR downward moves come into play and it is now trading at 1.1543, though we are looking forward to a corrective bounce during the US trading time. Right now, it is all about short trades and long-term outlook still eyeing a 1.1750 figure as EUR will likely to correct the previous losses in this week. A support seems to be more likely in a 1.1510 region and the future price outlook should include a break above 1.1720.

EUR/USD daily chart (October 2016- October 2018)

EUR USD daily chart 02-10-2018

At this moment, USD/CAD is trading just above 1.2800 (10.01.2018, GMT.18.00) and further CAD gain is anticipated ahead of BoC rate decision. GBP is losing ground residing at 1.3007, yet an upstream momentum is likely to happen in this week. EUR is looking to hold on above 1.1550 region, yet a support is expected at 1.1510 region and an upward momentum happens to be forthcoming.

Read more about USD JPY here.

Disclaimer: The content of this article is personal opinion and should not be considered as investment advice or suggestion towards any trading activity.

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