The USDCAD pair at a rate of 1.33115 experiences difficulty in making significant progress and moves back and forth within a limited range on Wednesday.
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- USD/CAD struggles to gain any meaningful traction and oscillates in a narrow band on Wednesday.
The pair currently trades last at 1.33115.
The previous day high was 1.3379 while the previous day low was 1.3286. The daily 38.2% Fib levels comes at 1.3321, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.3343, expected to provide resistance.
The USD/CAD pair struggles to capitalize on the overnight late rebound from the 1.3285 region, or a three-month low and remains on the defensive through the Asian session on Wednesday. Spot prices, however, manage to hold above the 1.3300 mark as traders keenly await the outcome of the high-anticipated FOMC monetary policy meeting before placing fresh directional bets.
The Federal Reserve (Fed) is scheduled to announce its decision later today and is widely expected to skip raising interest rates, bolstered by the below-consensus reading of the US consumer inflation. In fact, the US Labor Department reported on Tuesday that the headline CPI barely rose in May and the yearly rate decelerated from 4.9% to 4.0% – the smallest increase since March 2021. This, in turn, fails to assist the US Dollar (USD) to register any meaningful recovery from over a three-week low touched the previous day and acts as a headwind for the USD/CAD pair.
The year-on-year inflation rate, meanwhile, is still twice the Fed’s 2% target and supports prospects for further policy tightening by the US central bank. It is worth recalling that the markets have been pricing in a greater chance of another 25 bps lift-off at the July FOMC meeting. Hence, the main focus will also be Fed Chair Jerome Powell’s comments at the post-meeting presser, which will be closely scrutinized for clues about the future rate hike path. This will play a key role in influencing the USD price dynamics and provide a fresh directional impetus to the USD/CAD pair.
Heading into the key central bank event risk, investors’ anxiety is evident from a generally softer tone around the equity market, which could offer some support to the safe-haven Greenback. Apart from this, a modest downtick in Crude Oil prices might undermine the commodity-linked Loonie and contribute to limiting the downside for the USD/CAD pair, at least for the time being. Worries that a global economic slowdown, particularly in China, will dent fuel demand fail to assist Crude Oil prices to capitalize on the overnight strong move up for the first day in the previous five.
Technical Levels: Supports and Resistances
USDCAD currently trading at 1.3315 at the time of writing. Pair opened at 1.3318 and is trading with a change of -0.02 % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 1.3315 |
| 1 | Today Daily Change | -0.0003 |
| 2 | Today Daily Change % | -0.0200 |
| 3 | Today daily open | 1.3318 |
The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 1.3478, 50 SMA 1.3484, 100 SMA @ 1.3515 and 200 SMA @ 1.3516.
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 1.3478 |
| 1 | Daily SMA50 | 1.3484 |
| 2 | Daily SMA100 | 1.3515 |
| 3 | Daily SMA200 | 1.3516 |
The previous day high was 1.3379 while the previous day low was 1.3286. The daily 38.2% Fib levels comes at 1.3321, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.3343, expected to provide resistance.
Note the levels of interest below:
- Pivot support is noted at 1.3277, 1.3235, 1.3184
- Pivot resistance is noted at 1.3369, 1.342, 1.3462
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 1.3379 |
| Previous Daily Low | 1.3286 |
| Previous Weekly High | 1.3462 |
| Previous Weekly Low | 1.3313 |
| Previous Monthly High | 1.3655 |
| Previous Monthly Low | 1.3315 |
| Daily Fibonacci 38.2% | 1.3321 |
| Daily Fibonacci 61.8% | 1.3343 |
| Daily Pivot Point S1 | 1.3277 |
| Daily Pivot Point S2 | 1.3235 |
| Daily Pivot Point S3 | 1.3184 |
| Daily Pivot Point R1 | 1.3369 |
| Daily Pivot Point R2 | 1.3420 |
| Daily Pivot Point R3 | 1.3462 |
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