At the beginning of the week, the USDCAD currency pair managed to regain the 1.3250 level.

…
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 reclaimed the 1.3250 mark at the start of a new week.

The pair currently trades last at 1.32511.

The previous day high was 1.3255 while the previous day low was 1.3201. The daily 38.2% Fib levels comes at 1.3234, expected to provide support. Similarly, the daily 61.8% fib level is at 1.3222, expected to provide support.

The USD/CAD pair kicks off the new week on a positive note and edges higher above the critical resistance area at 1.3250 during the early Asian session. Market participants will keep an eye on Canadian and US employment data later this week. The major pair currently trades around 1.3260, up 0.06% for the day.

Statistics Canada showed on Friday that the Canadian Gross Domestic Product (GDP) grew by 0.3% in May, matching market consensus. However, the figure is likely to contract in June, suggesting an economic slowdown in the country. This could bring an end to the Bank of Canada’s (BoC) tightening cycle that has pushed interest rates to a 22-year high.

That said, the BoC announced a 25 basis point (bps) rate hike to 5.0% on July 12. BoC Governor Tiff Macklem disclosed that future policy decisions would be based on incoming data and the inflation outlook. Market participants anticipated that the Bank of Canada (BoC) would not deem it necessary to increase interest rates further this year.

Meanwhile, the uptick in oil prices has supported the Loonie and offset a slowdown in the Canadian manufacturing sector. Higher crude prices strengthen the Canadian Dollar, as the country is the leading oil exporter to the United States.

On the US Dollar front, annual US inflation grew at its slowest pace in over two years. The US Bureau of Economic Analysis reported on Friday that the Personal Consumption Expenditures (PCE) Price Index fell from 3.8% in May to 3% in June, below the market expectation of 3.1%. While the Federal Reserve’s preferred measure of inflation, the Core PCE Price Index, came in at 4.1% annually, down from 4.6% in May and below market expectations of 4.2%. Finally, Personal Income and Personal Spending MoM increased by 0.3% and 0.5%, respectively. The softer data indicates pricing pressures are easing and may bring the Federal Reserve (Fed) closer to the end of its hiking cycle.

Later this week, investors will closely watch the Canadian employment data on Friday. Also, the US ADP Employment Change for July and Nonfarm Payrolls will be key events to monitor. The data will be critical for determining a clear movement for the USD/CAD pair.

Technical Levels: Supports and Resistances

USDCAD currently trading at 1.3248 at the time of writing. Pair opened at 1.3254 and is trading with a change of -0.05 % .

The pair is trading above its 20 Daily moving average @ 1.3219, below its 50 Daily moving average @ 1.3305 , below its 100 Daily moving average @ 1.3423 and below its 200 Daily moving average @ 1.3463

The previous day high was 1.3255 while the previous day low was 1.3201. The daily 38.2% Fib levels comes at 1.3234, expected to provide support. Similarly, the daily 61.8% fib level is at 1.3222, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 1.3218, 1.3183, 1.3165
• Pivot resistance is noted at 1.3272, 1.329, 1.3326

[/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...