#USDCAD @ 1.38701 continues to gain ground ahead of the FOMC policy decision.
…
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 continues to gain ground ahead of the FOMC policy decision.
The pair currently trades last at 1.38701.
The previous day high was 1.3892 while the previous day low was 1.3814. The daily 38.2% Fib levels comes at 1.3862, expected to provide support. Similarly, the daily 61.8% fib level is at 1.3844, expected to provide support.
USD/CAD attempts to extend the gains for the second consecutive day on the back of improved risk appetite ahead of the US Federal Reserve (Fed) monetary policy decision. The spot price trades slightly higher near 1.3880 during the Asian session on Wednesday.
The US Dollar Index (DXY) received a boost from increased US Treasury yields on Tuesday, hovering around 106.70 with the 10-year US bond yield sitting at 4.90%, by the press time. Market sentiment leans towards the expectation that the US Fed will maintain the current interest rate at 5.5% in the Wednesday meeting. If there’s a hawkish statement from the Federal Open Market Committee (FOMC) regarding the future trajectory of interest rates, it could potentially strengthen the US Dollar (USD).
The conflict between Israel and Hamas has raised concerns about potential disruptions in the oil supply from the Middle East. Despite these worries, Crude oil prices have fallen to two-month lows putting pressure on the Canadian Dollar. Western Texas Intermediate (WTI) trades below $81.00 per barrel at the time of writing.
Additionally, on Tuesday, the disappointing data of the monthly Canadian GDP might have undermined the commodity-linked Loonie Dollar (CAD) and acted as a tailwind for the USD/CAD pair.
The release of Canada’s Gross Domestic Product (GDP) data from Statistics Canada on Tuesday, revealed that the economy experienced no growth, remaining flat at 0.0% in August. This result contradicts market predictions, which anticipated a 0.1% growth during the same period. Furthermore, S&P Global Manufacturing PMI will be eyed for gaining more cues on Canada’s economic scenario.
Technical Levels: Supports and Resistances
USDCAD currently trading at 1.3876 at the time of writing. Pair opened at 1.3875 and is trading with a change of 0.01 % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 1.3876 |
| 1 | Today Daily Change | 0.0001 |
| 2 | Today Daily Change % | 0.0100 |
| 3 | Today daily open | 1.3875 |
The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 1.3714, 50 SMA 1.3619, 100 SMA @ 1.3454 and 200 SMA @ 1.3485.
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 1.3714 |
| 1 | Daily SMA50 | 1.3619 |
| 2 | Daily SMA100 | 1.3454 |
| 3 | Daily SMA200 | 1.3485 |
The previous day high was 1.3892 while the previous day low was 1.3814. The daily 38.2% Fib levels comes at 1.3862, expected to provide support. Similarly, the daily 61.8% fib level is at 1.3844, expected to provide support.
Note the levels of interest below:
- Pivot support is noted at 1.3828, 1.3782, 1.375
- Pivot resistance is noted at 1.3907, 1.3939, 1.3985
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 1.3892 |
| Previous Daily Low | 1.3814 |
| Previous Weekly High | 1.3881 |
| Previous Weekly Low | 1.3661 |
| Previous Monthly High | 1.3892 |
| Previous Monthly Low | 1.3562 |
| Daily Fibonacci 38.2% | 1.3862 |
| Daily Fibonacci 61.8% | 1.3844 |
| Daily Pivot Point S1 | 1.3828 |
| Daily Pivot Point S2 | 1.3782 |
| Daily Pivot Point S3 | 1.3750 |
| Daily Pivot Point R1 | 1.3907 |
| Daily Pivot Point R2 | 1.3939 |
| Daily Pivot Point R3 | 1.3985 |
[/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
