Forex Technical indicators 24.07.2007
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Moving Average:
MA after bulish cross of the short MA line moving higher
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RSI
RSI trend shoving up trend at the level of 57.95%
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MACD
MACD crosses two lines and pointing upwards with high volume
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Bollinger
Bollinger gives us a bearish signal after the pair started making a correction down after touching the upper band.
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Bollinger Band and RSI
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Fundamentals:
The Canadian dollar gained before a government report that analysts forecast will show retail sales rose in May, bolstering speculation the central bank will lift interest rates. The currency strengthened today as the yield advantage on U.S. two-year Treasury notes over Canada's two-year bond shrank to the smallest in more than two years. ``The Canadian economy has got an underlying strength, which is helping the currency,'' said Jonathan Gencher, vice president of foreign exchange sales at Bank of Montreal in Toronto. ``The Bank of Canada is going to raise interest rates again in September.''
Canada's retail sales probably rose 0.5 percent in May after a 0.4 percent increase in the previous month, Statistics Canada will release the report tomorrow at 8:30 a.m. New York time. The Bank of Canada on July 10 raised its benchmark lending rate a quarter-percentage point to 4.50 percent and said a ``modest'' further increase may still be needed. Investors in the futures market are betting on one rate increase in September and see a chance for a third rise in December. Higher rates in Canada may push the nation's yields closer to those in the U.S., Canada's largest trading partner, where the benchmark rate is 5.25 percent. The Federal Reserve will keep its benchmark rate unchanged through the end of 2008, according to the median forecast of analysts in a Bloomberg News survey published July 10. Canada's two-year bond yielded 14 basis points, or 0.14 percentage point, less than the comparable-maturity U.S. Treasury note, near its narrowest gap since January 2005. Commodities account for about half of Canada's exports. Crude Oil for September delivery fell 90 cents, or 1.2 percent, to settle at $74.89 a barrel at 2:44 p.m. on the New York Mercantile Exchange. Jeffrey Currie, a London-based commodity analyst at Goldman Sachs Group Inc., the world's biggest securities firm, predicts crude oil may touch $95 a barrel this year unless OPEC unexpectedly increases production. The yield on Canada's benchmark 10-year bond rose about 1 basis point to 4.56 percent. The price of the 4 percent security maturing in June 2016 fell 4 cents to C$95.94. Bond yields move inversely to prices.
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Moving Average and MACD
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