#USDCAD @ 1.36383 is marching towards 1.3630 as the USD Index has resumed its upside journey. (Pivot Orderbook analysis)

…
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 is marching towards 1.3630 as the USD Index has resumed its upside journey.
• Overall market mood is full of caution as investors are shifting their focus toward the US GDP (Q1) data.
• The BoC won’t hesitate in hiking interest rates further if needed to arrest the sticky inflation.

The pair currently trades last at 1.36383.

The previous day high was 1.3651 while the previous day low was 1.3599. The daily 38.2% Fib levels comes at 1.3631, expected to provide support. Similarly, the daily 61.8% fib level is at 1.3619, expected to provide support.

The USD/CAD pair is marching towards the crucial resistance of 1.3630 in the Asian session. The Loonie asset is driving higher after a volatility contraction move as the US Dollar Index (DXY) is looking to conclude its nominal correction. The USD Index dropped marginally to near 101.40 after a V-Shape recovery influenced by volatility in S&P500.

S&P500 futures are showing some decent gains in the Asian session. The 500-US stock basket acted as a mixed bag as technology stocks were exclusively in demand while First Republic Bank dived further. Investors saw a loss of confidence in the United States administration after the First Republic Bank stated that the administration was reluctant to provide investment support amid deteriorating deposits by customers.

Overall market mood is full of caution as investors are shifting their focus toward the US Gross Domestic Product (GDP) (Q1) data. The annualized GDP is seen at 2.0% lower than the former release of 2.6%. A decline in consumer spending, higher interest rates by the Federal Reserve (Fed), and tight credit conditions by US commercial banks could have a negative impact on economic growth.

The release of the Bank of Canada’s (BoC) Summary of Deliberations showed that the Canadian economy is a little stronger than anticipated earlier. Also, the tight labor market is not consistent with the agenda of bringing stubborn inflation to 2%. Therefore, BoC Governor Tiff Macklem won’t hesitate in hiking interest rates further if needed to arrest the sticky inflation. BoC’s minutes confirmed that rate cuts are not expected this year.

Technical Levels: Supports and Resistances

USDCAD currently trading at 1.3634 at the time of writing. Pair opened at 1.3636 and is trading with a change of -0.01 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 1.3479, 50 SMA 1.3581, 100 SMA @ 1.3528 and 200 SMA @ 1.3422.

The previous day high was 1.3651 while the previous day low was 1.3599. The daily 38.2% Fib levels comes at 1.3631, expected to provide support. Similarly, the daily 61.8% fib level is at 1.3619, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 1.3607, 1.3577, 1.3555
• Pivot resistance is noted at 1.3658, 1.3681, 1.371

[/s2If]
Nehcap Expert Advisor
The NEHCAP MT4 EA is high quality professional trading system geared to generate returns without using GRID or martingales. Each trade has strict risk per trade parameter. The pairs under management include EURUSD, GBPUSD, AUDCAD, AUDNZD,GBPAUD, EURAUD, EURCAD, CHFJPY and many more.
The system is trading live: LIVE ACCOUNT TRACKING
You can run it free. Apply for a free trial and track our account. Buy the system or use profit share mechanism to generate returns on your MT4.
Join Our Telegram Group