In this article, we have covered the highlights of global market news about the USD/CAD, Gold, Silver and the Indian Rupee.
USD/CAD Holds Above 1.30 in the Weekly Technical Prediction for the Canadian Dollar
After a substantial change in the dynamics of the job market on Friday, the Canadian dollar lost a large portion of its gains. The story swiftly swung back in favor of the U.S. dollar, which continues to be supported by an active Federal Reserve, a solid economy, and safe-haven demand as recessionary worries mount, notwithstanding the Bank of Canada’s (BoC) earlier 75bps interest rate hike.
From a CAD standpoint, crude oil may face significant downward pressure as demand destruction gains favor, leaving the Canadian dollar vulnerable to additional weakness.
The focus of the next week’s economic calendar (see below) will be on U.S. fundamentals, particularly inflation. While an increase might support the Fed’s already hawkish attitude, a continuation of the current inflation easing to 8.5% may restrict dollar gains.
On the daily USD/CAD chart, price movement reveals that bulls are being restrained by the critical region of confluence near channel resistance (black). The daily candle on Friday has a lengthy lower wick that is pushing off the 50-day EMA (blue), which may indicate that an uptrend is about to begin. In light of the incoming fundamental data for the United States, the Relative Strength Index (RSI) is now hovering around the middle of the 50-point range, favoring neither bullish nor bearish momentum. After the data releases have been examined, I anticipate that markets will have a better understanding of the status of the American economy.
Gold Technical Forecast for the Week Ahead: XAU/USD
The price of gold stabilized this past week after declining steadily during August. Prices left behind a Bullish Engulfing candlestick pattern as they strengthened the 1681–1696 support range. The yellow metal then saw cautious bullish continuation as prices drew near the 1732 level of the 38.2% Fibonacci extension.
The 20-day Simple Moving Average (SMA), which is not much above, can bring back the bearish attention. The long-term declining trendline from March will then be in focus if it doesn’t. Confirming a breakthrough above this trendline will probably be crucial to reversing the negative bias. Up until that point, gold has opportunity to rise without necessarily changing the bearish emphasis from earlier this year.
If so, pay particular attention to the 100-day SMA as the next important milestone. Keep a watchful eye on the July low in case the market turns lower. The lowest price since 2021 might potentially be tested with a confirmed breakout. Losses after that would make the 1651 and 1609 Fibonacci extensions at 78.6% and 100% of their original value visible.
Silver Technical Forecast for the Week Ahead: XAG/USD
Following a false breakthrough beneath the 18.148–18.410 support range, silver prices have been moving upward during the previous week. Following the breach over the short-term downward trendline from the middle of August, XAG/USD confirmed the breakout. This has made it possible for greater gains as the 50-day SMA draws closer. Additionally, this line closely follows the 19.204 38.2% Fibonacci extension.
If we go higher, the August high at 20.871 would be in play before we expose the 23.6% level at 19.841. Keep a careful watch on the previously identified support zone in case the market turns lower. Following more losses, the 78.6% extension at 17.44 becomes visible before the 100% level at 16.507 is in play.
The Rupee has gained the most in seven weeks as the Dollar falls.
As the dollar index fell and oil prices began to decline, the Indian rupee saw its largest weekly gain in seven weeks on Friday. Investors are now waiting for domestic inflation data to be released next week.
The partly convertible rupee reached a session high of 79.4850 before closing up 0.2% at 79.58. It had weekly gains of 0.3%, which was the greatest result since the week ending July 29.
After the European Central Bank raised interest rates and signaled more increases, strengthening the region’s single currency, the dollar index fell 1.2% to trade below 109.
Due to the dollar’s problems, risky assets saw a boom, with all Asian equities and currencies soaring. Benchmark bond rates in India increased by 3 basis points to 7.1669% while equities increased by 0.2%.
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