USD/CAD Exchange Rate Prediction – The Dollar Eases as Yields Slide
The dollar edged slightly lower versus the Loonie as U.S. short-term treasury yields fell. News that the Omnicron variant of the covid virus made its way through several countries, which helped the dollar gain traction and buoyed the greenback.
The dollar edged lower and is poised to test trend line resistance near 1.28. Support is near the 10-day moving average, 1.2616. The 10-day moving average cross above the 50-day moving average, which means that a short-term uptrend is almost in place. Short-term momentum has turned positive as the fast stochastic generated a crossover buy signal. The exchange rate is overbought with the fast stochastic printing a reading of 93, above the overbought trigger level of 80. Medium-term momentum has turned positive as the MACD (moving average convergence divergence) index is generated a crossover buy signal. This scenario occurs as the MACD line (the 12-day moving average minus the 26-day moving average) crosses above the MACD signal line (the 9-day moving average of the MACD line).
New Contracts Signed Jump
New pending home sales jumped 7.5% in October, according to the National Association of Realtors. Expectations were for pending home sales to remain flat month over month. Sales were still 1.4% lower than in October 2020. Pending sales are a forward-looking indicator of sales that will close in one to two months. Closed sales in October also rose unexpectedly. Total housing inventory at the end of October stood at 1.25 million units, down 0.8% from September and down 12.0% from one year ago.