The USDCAD pair, trading at 1.31933, continues to face pressure around the 1.3180 level following the release of weaker-than-expected US inflation data.
…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for FREE REGISTER 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_level1)]
- USD/CAD remains on the defensive near the 1.3180 mark after the softer US inflation data.
The pair currently trades last at 1.31933.
The previous day high was 1.3234 while the previous day low was 1.3144. The daily 38.2% Fib levels comes at 1.3178, expected to provide support. Similarly, the daily 61.8% fib level is at 1.32, expected to provide resistance.
The USD/CAD pair extended the downside after the US Consumer Price Index (CPI) data and the Bank of Canada (BoC) policy decision on Wednesday. The pair remains under pressure and currently trades near 1.3180 in the early Asian session.
Following the July policy meeting on Wednesday, the Bank of Canada (BoC) raised the benchmark interest rate by 25 basis points (bps) to 5%, as the market expected. BoC Governor Tiff Macklem commented on the policy outlook that higher interest rates are necessary in order to slow demand growth in the economy and alleviate price pressures. He added that the BoC is likely to hike additional rates.
The BoC’s decision to raise rates comes after the release of US inflation data for June. The US Bureau of Labor Statistics publication showed that CPI declined to 3% YoY from the 3.1% prior. Meanwhile, the core CPI fell to 4.8% YoY from 5.3% versus the market consensus of 5%. The US Dollar faced some follow-through selling after the data and sharply declined to near 101.50, the lowest since April 2022. The inflation data reinforced expectations that the Federal Reserve will hold interest rates following an additional 25 bps raise at the July 25-26 policy meeting.
Moving on, market participants will focus on the release of the US Producer Price Index (PPI) for June and Unemployment Claims due later during the early North American session this Thursday. Investors will look for a fresh impetus and find trading opportunities around the USD/CAD pair.
Technical Levels: Supports and Resistances
USDCAD currently trading at 1.3187 at the time of writing. Pair opened at 1.3188 and is trading with a change of 0.01 % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 1.3187 |
| 1 | Today Daily Change | 0.0001 |
| 2 | Today Daily Change % | 0.0100 |
| 3 | Today daily open | 1.3188 |
The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 1.3228, 50 SMA 1.337, 100 SMA @ 1.348 and 200 SMA @ 1.3498.
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 1.3228 |
| 1 | Daily SMA50 | 1.3370 |
| 2 | Daily SMA100 | 1.3480 |
| 3 | Daily SMA200 | 1.3498 |
The previous day high was 1.3234 while the previous day low was 1.3144. The daily 38.2% Fib levels comes at 1.3178, expected to provide support. Similarly, the daily 61.8% fib level is at 1.32, expected to provide resistance.
Note the levels of interest below:
- Pivot support is noted at 1.3143, 1.3098, 1.3053
- Pivot resistance is noted at 1.3233, 1.3279, 1.3323
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 1.3234 |
| Previous Daily Low | 1.3144 |
| Previous Weekly High | 1.3387 |
| Previous Weekly Low | 1.3203 |
| Previous Monthly High | 1.3585 |
| Previous Monthly Low | 1.3117 |
| Daily Fibonacci 38.2% | 1.3178 |
| Daily Fibonacci 61.8% | 1.3200 |
| Daily Pivot Point S1 | 1.3143 |
| Daily Pivot Point S2 | 1.3098 |
| Daily Pivot Point S3 | 1.3053 |
| Daily Pivot Point R1 | 1.3233 |
| Daily Pivot Point R2 | 1.3279 |
| Daily Pivot Point R3 | 1.3323 |
[/s2If]
Download Nehcap EAWe have two EAs that are operational on our LIVE accounts.
- EA-FIX: Check out the details here. Download EA-FIX . EA-FIX is a non-grid HFT scalper.
- EA-GROWTH: High quality low dd EA using trend grids. Download EA_GROWTHJoin Our Telegram Group
