In the ever-fluctuating world of currency trading, experienced traders are currently anticipating a promising outlook. This is for the Canadian dollar (CAD) against the euro (EUR), Australian dollar (AUD), and New Zealand dollar (NZD). 

Driven by several key factors, this trend suggests that the CAD is likely to strengthen against these major currencies. In this article, we will delve into the reasons behind this anticipated rise and explore the potential implications for traders and investors.

The AUDCAD Performance 

(UPDATE) - AUDCAD dropped + 150 pips.

AUDCAD broke below the support zone around 0.89479 and continued trading within the descending structure. This price action provided opportunities for traders to enter the market. At the moment the market has dropped +150 pips and is close to the channel's lows and the support zone around 0.87356 where traders have their targets.

As such, lower timeframe structure and price action could provide more continuation trading opportunities however, traders who are already holding short positions will not enter the market around these levels.

The EURCAD Performance

EURCAD is trading below the resistance zone.

EURCAD's current price action and structure suggest that the market is now bearish as seen by the double top that rejected the resistance zone around 1.50962 which caused the market to aggressively drop and break below the previous support zone around 1.46325.

The inner descending trendline has developed from the lower highs and lower lows that the market has developed. According to this price action, traders anticipate a drop to the next support zone around 1.42342 to complete the bearish setup.

Read More: 7 Best Forex Trading Tips For 2023

The NZDCAD Performance 

NZDCAD broke out of the structure.

NZDCAD recently broke below the previous support zone around 0.82837. This price action comes after the market created a series of lower lows and lower highs and confirmed a descending trendline. This recent price action aligns the bigger trend with the smaller trend and thus provides confluence to the downside. According to this price action, traders are now bearish and anticipate NZDCAD to continue the movement to the downside.

Final Thoughts On Today’s Analysis 

Traders are cautiously optimistic about the CAD prospects against the other currencies based on a combination of strong economic fundamentals. The rising commodity prices, divergent central bank policies, and shifting risk sentiment. 

However, it is essential to remember that currency markets are highly volatile and subject to various unpredictable factors. Are you interested in learning more about our daily commentary? Subscribe to our YouTube Channel today!