Currency pair dollar — canadian dollar (USD/CAD)

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Currency pair USD / CAD is among of poplar assets in market. Various agencies and brokers provide different data on this point but each trader includes USD/CAD in ten most popular assets.  We take a look how above asset behaves in the article as well as what general rules are in operation with currency pair.

USD/ CAD chart online

USD/CAD chart online is shown below and you can monitor the asset quotes in real-time as well as perform technical analytics and other measures where real-time chart and platform are required.



Features of pair

USD to CAD includes American and Canadian currency. Therefore it follows the main performance – the maximum activity is observed during American trading session. Please pay your attention to the figure below..

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From this figure we notice that American trading session is supplemented by increase of volumes and volatility. By the way the volatility for present currency pair is not the biggest and is less than 80 points avg. per day (as a rule they are limits).

Next important performance for currency USD/CAD resides in large shades at candlesticks. This is also typical in American session. Besides that the session is aggressive and asset is quite special that’s why such trend is observed.

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Propensity to flats and "hang-ups"

Each trader which is acquainted with rate and dealt with currency knows that pair USD/CAD is not the simplest asset because it moves illogically and sometimes it doesn’t move at all. Quotes The quotes can harden and stop in this position for minutes. Illustration of above situations is shown below.

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Generally these situations are inherent in nights when there are no volumes for Canadian dollar. There are severe flat situations before serious economic news when traders wait for market response and watch.

Market response is also important on such areas and facts. Logic is as follows:

  • Market stop in consequence of volumes lack. In this context traders say about watching.
  • Going -off flat will be impulsive as a rule, it caused to visible motion in direction of breakout.


Correlation with other assets

Correlation is the important feature for each asset. Even though you do not use it directly in your trading, it will be important from the point of asset that influence indirectly. As USD/CAD has a weak correlation on currency pairs. It is reasonable to say only about tie line in most cases between underlying assets under discussion and pair USD/JPY. But the line is not really intense.

Concerning dependencies it’s is important to note high correlation between quotes USD/CAD in Forex and oil price. Indeed it’s known a little that Canada takes the second position in the world on oil resources. That’s why oil price hike consolidates the currency position. Reverse trend is not observed so clearly as far as Canada Канада is outside of oil exporters leaders that’s why local drop in price are indifferent.

What news do affect?

Key feature of above currency pair is that it responds to any market changes quite well including news. As a result many traders which build their strategies using news apply pair USD/CAD. It’s possible to emphasize following news highlights that have an impact on above asset, которые:

- Status information of economy in one of represented country.

- Data concerning oil and oil products.

- Change and current status of raw material market

USD/CAD is the currency pair wherein principal currency is USD, quotes changes are conducted on the basis of correlation with Canadian dollar. Let’s consider the each of the tools in details.

USD is the most popular world currency. As a result this asset becomes unpredictable to a great extent  because there are a lot of various factors that have an impact on CAD. At the same time economic calendar is used in prediction of American dollar quite effectively.

CAD is Canadian currency. It is more separated; as a result it’s quite easy to observe its changes. It is sufficient to focus on study of news inside specific country. So some data have impact on CAD position to a large extent:

  • Price change for coal on the goods exchange
  • Price change for various non-ferrous металлы
  • Price changes for oil.
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