The USDCAD currency pair has found some temporary support at 1.31798, but there is still a strong inclination for it to decrease in value.

…
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 has gauged a temporary cushion, however, the downside bias is still solid.

The pair currently trades last at 1.31798.

The previous day high was 1.3238 while the previous day low was 1.3169. The daily 38.2% Fib levels comes at 1.3211, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.3195, expected to provide resistance.

The USD/CAD pair found intermediate support after correcting swiftly to near 1.3160 in the London session. The Loonie asset is expected to continue its downside move as the US Dollar Index (DXY) is under pressure after less-hawkish interest rate guidance delivered by the Federal Reserve (Fed) on Wednesday.

S&P500 futures have posted significant gains in Europe, portraying an increase in the risk appetite of the market participants. US equities remained choppy on Wednesday after the Fed raised interest rates by 25 basis points (bps) to 5.25-5.50%. An interest rate hike of 25 bps was already expected by the market participants.

For September’s monetary policy, Fed policymakers decided to remain dependent on incoming data. The market mood turned upbeat after Fed Chair Jerome Powell conveyed that policymakers are not expecting a recession amid a tight labor market.

Action in the US Dollar Index is expected to continue ahead of the release of the second quarter Gross Domestic Product (GDP) numbers and June’s Durable Goods Orders data. As per the preliminary report, GDP and Durable Goods Orders were expanded at a pace of 1.8% and 1.0% respectively.

Meanwhile, the Canadian Dollar looks solid against the US Dollar due to upbeat oil prices. West Texas Intermediate (WTI) oil futures are gathering strength to climb above the crucial resistance of $80.00 as investors hope that July’s interest rate hike by the Fed is the last nail in the coffin. It is worth noting that Canada is the leading exporter of oil to the United States and higher oil prices support the Canadian Dollar.

Technical Levels: Supports and Resistances

USDCAD currently trading at 1.3176 at the time of writing. Pair opened at 1.3208 and is trading with a change of -0.24 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 1.322, 50 SMA 1.3316, 100 SMA @ 1.3435 and 200 SMA @ 1.3468.

The previous day high was 1.3238 while the previous day low was 1.3169. The daily 38.2% Fib levels comes at 1.3211, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.3195, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1.3172, 1.3136, 1.3103
• Pivot resistance is noted at 1.3241, 1.3274, 1.331

[/s2If]
Download Nehcap EAWe have two EAs that are operational on our LIVE accounts.

1. EA-FIX: Check out the details here. Download EA-FIX . EA-FIX is a non-grid HFT scalper.
2. EA-GROWTH: High quality low dd EA using trend grids. Download EA_GROWTHJoin Our Telegram Group

Share this:

• Facebook
• X

Like this:

Like Loading...