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Checking out USD/CAD today after data hits the markets from both the U.S. and Canada. Will it be enough to provide short-term momentum to take some quick pips?

Before moving on, ICYMI, we’ve started doing a Daily London Session Watch list! And today, we looked at an opportunity forming on AUD/CAD ahead of manufacturing data from Canada, so be sure to check that out. For all you traders out there who trade the London session, be sure to check out the site daily for the latest news updates and pairs that could be on the move for the session!

Intermarket Snapshot

Equity Markets Bond Yields Commodities & Crypto
DAX: 13273.28 +0.50%
FTSE: 7367.21 +0.81%
S&P 500: 3121.90 0.00%
DJIA: 28018.03 -0.06%
US 10-yr 1.798% -0.01
Bund 10-YR -0.337% -0.002
UK 10-YR: 0.738% -0.013
JPN 10-YR: -0.088% -0.021
Oil: 55.94 -1.95%
Gold: 1470.10 -0.12%
Bitcoin: 8077.77 -1.24%
Etherium: 174.72 -1.57%

Fresh Market Headlines & Economic Data:

Upcoming Potential Catalysts on the Forex Calendar for U.S. & Asia:

  • Fed Williams speech at 2:00 pm GMT
  • BOC Wilkins speech at 6:00 pm GMT
  • Japan Trade balance at 11:50 pm GMT
  • Australia Leading Index at 12:30 am GMT (Nov. 20)
  • China Loan Prime Rate at 1:30 am GMT (Nov. 20)

What to Watch: USD/CAD

USD/CAD 1-Hour Forex Chart
USD/CAD 1-Hour Forex Chart

No major catalysts seems to be coming up in the next couple of sessions, so we’re focusing on USD/CAD after economic data from both the U.S. and Canada seems to have brought some life to the currency markets. We can see in the news list above that U.S. housing posted positive data, while Canada’s manufacturing sales took a step back in September, both likely were contributors to USD/CAD’s pop higher. This pop comes after a bit of consolidation at the major psychological area around 1.3200,  so momentum traders may hop on this price action for a long opportunity.

In the short-term, traders may look to target the previous swing high around 1.3270, an achievable short-term target given the daily ATR of around 50 pips. Swing traders may check this out as well as the pair is in an uptrend higher after bouncing off of October lows around 1.3050. We’ve also got additional fundamental support for a long position with oil under pressure as trade talks drag on.

The short-term bear case for USD/CAD is a little bit tougher to make given the latest data, but a positive turn in global risk sentiment may be enough for traders to get out of safe havens like the Greenback and into risk currencies like the Loonie. In that scenario, a break below 1.3200 will likely draw in momentum sellers, or possibly some profit taking from swing traders in longer-term positions.