The USD/CAD has packed plenty of price action in the past few days of trading and volatility is likely to continue as ‘fair’ equilibrium is sought.

As of this writing the USD/CAD currency pair is near the 1.285750 mark.  On the 4^th of August the USD/CAD was trading near lows of 1.28200, coming within sight of support seen in the last week of July and but not coming anywhere near the low on the 1^st of August which touched 1.27675. On the 5^th of August the USD/CAD soared to nearly 1.29880, but then reversed lower before going into the weekend.

Monday’s move towards Lows may Raise Eyebrows of USD/CAD Speculators

Intriguingly yesterday’s trading in the USD/CAD also produced another selloff and the currency pair actually consolidated between 1.28480 and 1.28650 for a lot of the day. This morning’s trading has seen the USD/CAD essentially sustain these lower marks, which were last traded in a sincere way on the 4^th of August. The spike upwards on Friday via buying in the USD/CAD happened after the Average Hourly Earnings data showed an uptick in payroll spending, per my interpretation of Forex.

• Volatility continues to be a minefield in the USD/CAD for day traders, and risk management certainly is needed.
• The USD/CAD is testing lows seen on the 4^th of August, which may entice speculators who believe the currency pair is momentarily oversold.

The notion that the USD/CAD spiked higher on strong buying Friday, and then reversed lower may be seen as a pure technical move proving the Forex pair was overbought. However, some speculators may look at the current value of the USD/CAD as it traverses important support and suspect the currency pair may actually now be oversold. Choppy conditions are likely to be demonstrated in the coming days.  

If the USD/CAD starts to trade within a Narrow Range this may Prove Attractive

Traders who are cautious may want to see if current support levels can hold. If the USD/CAD can stay within the 1.28570 to 1.28600 zone for a time, this may prove to be a rather interesting ignition point to launch trades. However, day traders should probably look for quick hitting trades that are not overly ambitious.  The use of conservative leverage and a slightly wider stop loss, compared to a relatively close take profit target may prove to be worthwhile.

Consolidation may prove to be favorable in the near term as financial houses interpret the tea leafs from the U.S Federal Reserve. Traders looking to take advantage of support levels may want to place buying positions near support around the 1.28565 to 1.28550 vicinity to look for upside momentum.

Canadian Dollar Short-Term Outlook

Current Resistance: 1.28650

Current Support: 1.28555

High Target: 1.28970

Low Target: 1.28212

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SOL/USD is trading near short-term highs in early trading this morning, and the ability of Solana to produce rather quick results on speculative wagers can prove enticing.

SOL/USD is trading near short-term highs as of this morning near the 36.0000 ratio.  On the 21^st of June SOL/USD did trade above the 39.0000 mark, this reversal higher was achieved after the cryptocurrency traded near the 28.6500 vicinity on the 19^th of June. Solana has mirrored the major digital asset marketplace and has suffered a strong bearish trend. However, SOL/USD continues to offer speculators a place to look for quick trading results which could attract those who like fast wagers.

Entry price orders should certainly be used when pursuing movement in SOL/USD. A live market order in SOL/USD is an open invitation to receive an unexpected price fill which could deliver a rather difficult trading path for a speculator.

While SOL/USD trades near short-term highs momentarily, traders may feel inclined to seek downside momentum which aims for nearby support levels. Because of the speed which Solana trades, speculators are also urged to use take profit and stop loss orders too, this so market action doesn’t escape trading targets in a dramatic fashion.

SOL/USD has been able to produce a rather stimulating move upwards the past handful of days after falling to its lower depths.  The move higher however, also occurred as the major counterparts of Solana were able to produce some buying power. Nervous sentiment remains abundant in the cryptocurrency marketplace and speculators who believe additional upside can be found beyond current resistance levels may want double check their perceptions.

36.8000 looks to be a rather solid resistance level for short term traders, if it is not toppled this may send a negative signal to traders.  If the 36.0000 juncture cannot be passed and sustained, this may ignite selling in SOL/USD.  Trading conditions in Solana dictate that conservative amounts of leverage are needed to make sure moves that go against the chosen direction of the trader doesn’t wipe out their account with a single adventure.

Support levels of 35.5000 to 35.000 should be monitored in the short term. If these support ratios start to look vulnerable, SOL/USD could quickly find that it is testing the 34.8000 ratio. If this lower value proves vulnerable this would likely indicate another downward dose of selling is taking hold and it could produce a near term move below the 34.0000 mark.

Solana Short-Term Outlook

Current Resistance: 36.8500

Current Support: 34.9000

High Target: 38.6000

Low Target: 33.6000

USDT/USD remains under its spoken 1.00 USD mark, and its inability to achieve this level for a while may be igniting speculative considerations.

USTD/USD is trading below 1.000. As the most important stable coin in the cryptocurrency world, Tether proclaims that it functions as a solid fundamental element within for digital assets allowing cryptocurrency businesses to transact USDT/USD with other cryptos to lock in value. However during the past month with the destruction of TerraUSD and its oblivion from the world of stable coins, questions have arisen regarding all the remaining stable coins including Tether.

USDT/USD though appears rather intriguing from a speculative viewpoint because it has found it difficult to achieve the 1.00 USD equilibrium on a steady basis since the 11^th of May. On the 12^th of May USDT/USD sank momentarily to a value of nearly 0.93960000 when fear was rampant in the cryptocurrency world, as a firestorm of selling engulfed the broad market and concerns about stable coins climaxed as TerraUSD failed.

From a speculative consideration USDT/USD is difficult to trade because a lot of leverage will likely be needed by a day trader to get a worthwhile result if they do not have hundreds of thousands of dollars in their account to use, even if the trade moves in the intended direction the trader wants. Entry price orders must be used to make sure fractional differences are fulfilled and there are no unexpected price fills. Also, Tether moves as slow as a snail, so fast results cannot be anticipated. Patience and the ability to withstand the fatigue of transactions costs via overnight trading of USDT/USD would have to be needed too.

Simply put if a speculator wants to sell USDT/USD because they think the so called stable coin can fall further in value, they might be right, but the trader may not have enough time to make the trade profitable because they will likely have to give up before a positive result can be made.   However, if a trader has deep pockets, time and understands the costs involved in speculating on USDT/USD there could be an opportunity to wager on further downside momentum. Folks, this is why hedge funds are the community who is mostly trying to short Tether, they have the money and the time to pursue this option.

Traders who cannot actually speculate on USDT/USD however can use Tether to their advantage. USDT/USD serves as an interesting barometer of the broad cryptocurrency market. The inability of Tether to seriously trade near 1.00000000 in the past few weeks is rather startling and indicates the bearish market has not disappeared in cryptos. As long as USDT/USD remains under the 1.00000000 ratio, it may be a sign selling will remain the stronger force in the digital asset world.

Current Resistance: 0.999371000

Current Support: 0.99890000

High Target: 0.99960000

Low Target: 0.99850000

We expected that the gains in the EUR/USD price would be temporary, as the price jumped towards the 1.0748 resistance level, following new tightening comments by European Central Bank Governor Lagarde. The pair returned to decline quickly after the markets absorbed the statements to the support level 1.0642 and settles around the level of 1.0670 at the time of writing the analysis, before announcing the growth rate of the US economy.

European Central Bank President Christine Lagarde said officials would not rush to withdraw stimulus as her French colleague echoed her to insist there was no consensus on a half-point rate hike. A day after the European Central Bank president’s schedule of quarter-point increases angered hawkish officials wanting the option to act more aggressively.

“I don’t think we’re in a situation where there is a lot of demand right now,” Lagarde said at the World Economic Forum in Davos, Switzerland. “It is certainly supply-side inflation of the economy. And in that case, we have to move in the right direction, of course, but we don’t have to rush, and we shouldn’t panic.”

Lagarde spoke after publishing a blog post effectively setting the course for the ECB’s next three scheduled decisions that will put the institution on track to finally exit sub-zero monetary policy and align more closely with its global peers already working against the threat of inflation. Villeroy’s notes indicated that he and other officials are currently in agreement with her schedule.

“The 50 basis point rise is not part of the consensus at this point, I’m clear,” the governor added. She added: “It will be a normalization of our monetary policy, it will not be tightening,” and “the increase in interest rates will be gradual.”

Under Lagarde’s calendar, the European Central Bank will end its bond purchases in June, raise once in July and once in September, raising the deposit rate from -0.5% to zero. That timetable has angered colleagues who want to keep open the option to act faster, according to people familiar with the matter. “When you get out of the negative level, it could be at zero, and it could be just above zero,” she said, dismissing concerns about whether the central bank might consider a 50 basis point move. “This is something we will determine based on our expectations, on the basis of our future guidance.”

Both Lagarde and Villeroy see rates moving higher to a level considered neutral, which could be between 1% and 2%. For his part, the French governor has set a vision to reach that range “sometime next year”, which would imply a whole series of price increases within the next 18 months. Investors are betting on four increases of 25 basis points by the European Central Bank by the end of 2022.

The European Central Bank chief played down the risks of a recession in the region, saying that “at the moment, we are not experiencing a recession in the eurozone.” She cited “low rates” of unemployment, large household savings, and the prospect of a strong summer for the tourism industry as forces that would offset negative shocks from the war and record inflation. Villeroy agreed: “When we look at the activity it’s still resilient in Europe.” “We will continue to have significant growth this year.”

According to the technical analysis of the pair: There is no change in my technical view for the price performance of the EUR/USD currency pair. It is still at the beginning of breaking the descending channel and lacks sufficient momentum to confirm this, as it is necessary to move towards the resistance levels 1.0795 and 1.1000, respectively. To do that I still see any gains in the Eurodollar will remain up for sale as long as the Russo/Ukrainian war continues, and the ECB rate hike still has time. On the downside, the support level at 1.0485 will be the starting point for the bears again. The Euro-dollar does not expect important European data today, and all focus will be on the announcement of the growth rate of the US economy and the weekly jobless claims.

LUNA/USD has demonstrated considerable volatility the past five days of trading as it has tested short term lows, erupted higher and then reversed lower again.

LUNA/USD is trading near the 89.7000000 mark as of this writing and is delivering speculators with plenty of trading opportunities as it moves fast and produces rapid changes in value. On the 25^th of April, LUNA/USD was near the 97.50000000 mark, but one day later Terra fell from a seemingly comfortable value above 96.00000000 to nearly 86.90000000 in a handful of hours.

The drop of more than 10% in value in such a short duration certainly caused some speculators pain, while others no doubt profited if they were short sellers at that time. Speculators have a dangerous decision to make now regarding their perceptions on the direction of LUNA/USD. It will be important for traders to use their risk taking tactics wisely. LUNA/USD is near important support, but still maintains a rather attractive price range compared to many of its major cryptocurrency counterparts.

Interestingly, the fall to nearly 86.90000000 on the 26^th of April did not come close to the one month low via technical charts.  A price of nearly 76.00000000 was tested on the 18^th of April; this price was a retest of lows seen in the first week of March. LUNA/USD while correlating to the broad marketplace; is actually still perhaps an outlier and speculators should be cautious with Terra based on this notion.

LUNA/USD can move fast and if support levels near 89.00000000 fail to hold and are proven vulnerable, a quick test of the 88.7500000 to 88.50000000 ratios could be seen.  If short term selling were to build momentum and the 87.00000000 mark were challenged than additional nervous sentiment could develop in LUNA/USD, particularly if long term holders of Terra decide they should cash in some of the profits they have made.

While the broad cryptocurrency market continues to reflect nervousness, LUNA/USD may find itself reacting to this overall weak behavioral sentiment abruptly. The thought of selling LUNA/USD may not appeal to its speculators over the mid-term, but consideration of short and near term prices may be more important for day traders who have enough courage to short Terra.

If LUNA/USD actually climbs and begins to test the 90.00000000 mark in the short term, then it is also logical short term traders may search for quick hitting profits upwards. LUNA/USD has delivered swift results the past week and traders should be extra cautious within its choppy waters.

Terra Short-Term Outlook

Current Resistance: 90.55000000

Current Support: 88.74000000

High Target: 94.9800000

Low Target: 84.93000000

DOGE/USD has surged higher in early trading this morning, but before speculators look for huge percentage changes, they should note the consolidated range.

DOGE/USD has moved within sight of 14 and half cents in early trading this morning. Two days ago DOGE/USD was trading near a low of 13 and one/third cents. The move higher has been strong and fast, but it must be noted that the pace upwards took place in a rather consolidated framework. DOGE/USD for all of its ‘implied’ volatility has actually been rather tranquil when compared to its results of the past.

DOGE/USD does not seem to be the leader of the pack anymore regarding speculative interest from cryptocurrency traders. Once the darling of traders, Dogecoin can be argued to have been a leading barometer of sentiment within the digital asset world, but its status as the most appealing speculative cryptocurrency seems to have been replaced by the likes of Shiba Inu. Perhaps too, cryptocurrency has become more ‘mature’ and traders are leaning more towards digital assets with stated utilitarian reasons for existing.

However, whether or not DOGE/USD is now a proactive cryptocurrency which serves as a barometer of things to come in the broad cryptocurrency market, or if it is only a reactive cryptocurrency, Dogecoin remains a worthwhile speculative property. If DOGE/USD is merely reacting to the sentiment in the broad cryptocurrency market, its trading does represent what has been seen in the bigger trading sphere. Choppy conditions have been demonstrated in DOGE/USD and it reacted to lows on the 18th of April with a sudden burst upwards, mirroring many of the other major cryptocurrencies.

If DOGE/USD can muster enough support and hover near the 14 and half cents ratio, this may be taken as a positive sign by optimistic bulls. The consolidated range of DOGE/USD which has been seen quite a bit since the last week in March may prevail, but there is some evidence to suggest DOGE/USD could move higher and test resistance if the broad cryptocurrency remains stable and buying continues to be displayed without violent selloffs.

Caution as always with DOGE/USD should be practiced. While consolidated prices have been seen, there is always a chance a sudden spark could produce rapid changes in value in Dogecoin. Speculators who are willing to wager on upside momentum should pay attention to current support levels near 14 and a quarter cents, if this mark proves durable, buying DOGE/USD may make sense in the near term while looking for realistic targets slightly below 15 cents perhaps.

Dogecoin Short Term Outlook:

Current Resistance: 0.14690000

Current Support: 0.14090000

High Target: 0.15400000

Low Target: 0.13320000