{"id":137163,"date":"2018-11-14T10:47:41","date_gmt":"2018-11-14T15:47:41","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=137163"},"modified":"2018-11-14T06:49:56","modified_gmt":"2018-11-14T11:49:56","slug":"cad-currency-index-declining-oil-prices-may-weaken-the-canadian-dollar","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2018\/11\/cad-currency-index-declining-oil-prices-may-weaken-the-canadian-dollar\/","title":{"rendered":"CAD Currency Index: Declining oil prices may weaken the Canadian dollar"},"content":{"rendered":"<div id=\"inves-860933129\" class=\"inves-below-title-posts inves-entity-placement\"><div id =\"posts_date_custom\"><div align=\"left\">November 14, 2018<\/div><hr style=\"border: none; border-bottom: 3px solid black;\">\r\n<\/div><\/div><p><strong>By <a href=\"http:\/\/www.ifcmarkets.com\/\" target=\"_blank\" rel=\"noopener\">IFCMarkets<\/a><\/strong><\/p>\n<p><strong>Declining oil prices may weaken the Canadian dollar<\/strong><\/p>\n<blockquote><p>In this review, we suggest considering the personal composite instrument (PCI) CAD_Index \u2013 \u201cCAD Currency Index\u201d. It falls when the Canadian dollar weakens against the other major currencies. Is there a possibility for <a href=\"https:\/\/www.ifcmarkets.com\/en\/trading-conditions\/personal-instrument-pci\/cad-index\">CAD_Index prices<\/a> to decrease?<\/p><\/blockquote>\n<p>Hydrocarbons account for about a quarter of Canadian exports. The decrease in world oil prices worsens economic indicators of Canada and negatively affects the Canadian dollar. Additional negative factors were: the next suspension of the construction of the Keystone XL pipeline, which is supposed to transport Canadian heavy crude oil for refining in the USA, as well as a slowdown in the development of industrial production in China. On November 23, important data on inflation for October will be published in Canada. They may affect the decision of the Bank of Canada to keep or raise the rate at its next meeting on December 5.<\/p>\n<p style=\"text-align: center; margin-bottom: 20px; margin-top: 20px;\"><img decoding=\"async\" style=\"float: none;\" src=\"https:\/\/ifccd.net\/uploads\/image\/13-11-2018.png\" alt=\"CAD_Index\" width=\"660px\" \/><\/p>\n<p class=\"emailSummary\">On the daily timeframe, <b>CAD_Index: D1<\/b> has breached down the support line of the rising trend. The further price decrease is possible in case of the further reduction in oil prices and preservation of the rate of the Bank of Canada.<\/p>\n<ul class=\"emailSummary\">\n<li>The <b>Parabolic indicator<\/b> gives a bearish signal.<\/li>\n<li>The <a href=\"https:\/\/www.ifcmarkets.com\/en\/ntx-indicators\/bolinger-bands\">Bollinger bands<\/a> have narrowed, which indicates low volatility. Both bands are titled downwards.<\/li>\n<li>The <a href=\"https:\/\/www.ifcmarkets.com\/en\/ntx-indicators\/rsi\">RSI indicator<\/a> is below 50. No divergence.<\/li>\n<li>The <a href=\"https:\/\/www.ifcmarkets.com\/en\/ntx-indicators\/macd\">MACD indicator<\/a> gives a bearish signal.<\/li>\n<\/ul>\n<p>The bearish momentum may develop in case <b>CAD_Index<\/b> falls below its last fractal low and the lower Bollinger band at 0.8. This level may serve as an entry point. The initial stop loss may be placed above the last fractal high, the upper Bollinger band and the Parabolic signal at 0.813. After opening the pending order, we shall move the stop to the next fractal high following the Bollinger and Parabolic signals. Thus, we are changing the potential profit\/loss to the breakeven point. More risk-averse traders may switch to the 4-hour chart after the trade and place there a stop loss moving it in the direction of the trade. If the price meets the stop level (0.813) without reaching the order (0.8), we recommend to close the position: the market sustains internal changes that were not taken into account.<\/p>\n<h2 class=\"emailSummary\" style=\"margin-top: 15px !important;\">Summary of technical analysis<\/h2>\n<table style=\"border: solid 1px black;\" cellspacing=\"0\" cellpadding=\"0\" align=\"left\">\n<tbody>\n<tr>\n<td align=\"left\" valign=\"top\"><b>Position<\/b><\/td>\n<td align=\"left\" valign=\"top\">Sell<\/td>\n<\/tr>\n<tr>\n<td align=\"left\" valign=\"top\"><b>Sell stop<\/b><\/td>\n<td align=\"left\" valign=\"top\">Below 0.8<\/td>\n<\/tr>\n<tr>\n<td align=\"left\" valign=\"top\"><b>Stop loss<\/b><\/td>\n<td align=\"left\" valign=\"top\">Above 0.813<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>Market Analysis provided by <a href=\"http:\/\/www.ifcmarkets.com\/\" target=\"_blank\" rel=\"noopener\">IFCMarkets<\/a><\/p><div id=\"inves-3254607281\" class=\"inves-in-content inves-entity-placement\"><hr style=\"border: 1px solid #ddd;\">\r\n<div id=\"inpost_ads_header\">\r\n<p style=\"font-size:10px; float:left; color:#666;\">Free Reports:<\/p><\/div>\r\n<div id=\"inpost_ads\"> \r\n<p style=\"font-size:15px; float:left;\"><a href=\"https:\/\/goo.gl\/1ApBOV\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/investmacro.com\/wp-content\/uploads\/2018\/06\/graph_techs_PD.png\" align=\"left\" width=\"80\"  height=\"55\"\/><\/a>\r\n\t     <a href=\"https:\/\/goo.gl\/1ApBOV\"><b><u>Get Our Free Metatrader 4 Indicators<\/u><\/b><\/a> - Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter<\/p><br><br>\r\n<br>\r\n<br>\r\n<p style=\"font-size:15px; float:left;\"><a href=\"https:\/\/goo.gl\/f3RrHX\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/investmacro.com\/wp-content\/uploads\/2019\/01\/cot_pie_80.png\" align=\"left\" width=\"80\"  height=\"55\"\/><\/a>\r\n\t    <a href=\"https:\/\/goo.gl\/f3RrHX\"><b><u>Get our Weekly Commitment of Traders Reports<\/u><\/b><\/a> - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.<\/p><br><br>\r\n<\/div>\r\n<hr style=\"border: 1px solid #ddd;\">\r\n<br><\/div>\n","protected":false},"excerpt":{"rendered":"<p>By IFCMarkets Declining oil prices may weaken the Canadian dollar In this review, we suggest considering the personal composite instrument (PCI) CAD_Index \u2013 \u201cCAD Currency Index\u201d. It falls when the Canadian dollar weakens against the other major currencies. Is there a possibility for CAD_Index prices to decrease? Hydrocarbons account for about a quarter of Canadian [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-137163","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/137163","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=137163"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/137163\/revisions"}],"predecessor-version":[{"id":137184,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/137163\/revisions\/137184"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=137163"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=137163"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=137163"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}