#USDCAD @ 1.35581 is juggling above 1.3550 as the focus has shifted to the US growth rate and Durable Goods data. (Pivot Orderbook analysis)

…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for PREMIUM VERSION HERE to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level4)]

• USD/CAD is juggling above 1.3550 as the focus has shifted to the US growth rate and Durable Goods data.
• The BOC surprised the market with a lower-than-projected rate hike by 50 bps.
• Oil prices have accelerates despite a build-up of oil inventories by the EIA.

The pair currently trades last at 1.35581.

The previous day high was 1.3652 while the previous day low was 1.3508. The daily 38.2% Fib levels comes at 1.3563, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.3597, expected to provide resistance.

The USD/CAD pair has turned sideways after a wild gyration in a 1.3533-1.3650 range in the late Tokyo session. The asset is displaying a rangebound structure in a 1.3545-1.3582 area in Asia. The major is expected to remain lackluster ahead of the release of the US critical data.

Meanwhile, market sentiment is extremely positive and risk-perceived currencies are having a ball. The US dollar index (DXY) has witnessed a dead cat bounce after refreshing its monthly low at 109.56. While the 10-year US Treasury yields are still vulnerable and hovering around the cushion of 4%.

A roller-coaster move in a 1.3545-1.3582 area on Wednesday was recorded after the announcement of the interest rate decision by the Bank of Canada (BOC). BOC Governor Tiff Macklem announced a rate hike by 50 basis points (bps), pushing the borrowing rates to 3.75%. A lower-than-projected rate hike has surprised the market participants.

Talking about the peak of inflationary pressures, BOC’s Macklem cited that the central bank is still far from the goal of ensuring inflation is low, stable, and predictable. On policy guidance, Canada’s central bank stated that they are getting closer to the end of the tightening phase but added that they are not there yet.

“Analysts at CIBC still expected the rate to peak at 4.25%, despite the “slight dabbing of the brakes” compared to previous hikes.

On the US dollar front, projections claim that the US GDP has witnessed a growth rate of 2.4% in the third quarter vs. a de-growth of 0.6%. Also, the US Durable Goods Orders are seen higher at 0.6% against a drop of 0.2%.

Meanwhile, oil prices have witnessed a firmer rally amid tailwinds of a weaker DXY and sanctions on Russia. The oil prices have climbed to near $88.00 despite an announcement of an oil inventory build-up by the Energy Information Administration (EIA). The oil stockpiles have accelerates by 2.588M barrels against the projections of 1.029M barrels of build-up, for the last week ending October 21.

Technical Levels: Supports and Resistances

USDCAD currently trading at 1.3567 at the time of writing. Pair opened at 1.3552 and is trading with a change of 0.11 % .

The pair is trading below its 20 Daily moving average @ 1.3714, above its 50 Daily moving average @ 1.3405 , above its 100 Daily moving average @ 1.3154 and above its 200 Daily moving average @ 1.2927

The previous day high was 1.3652 while the previous day low was 1.3508. The daily 38.2% Fib levels comes at 1.3563, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.3597, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1.3489, 1.3426, 1.3345
• Pivot resistance is noted at 1.3633, 1.3714, 1.3777

[/s2If]
Join Our Telegram Group