USD/CAD: deeper drop needs confirmation
August 31, 2023 4:27 pmVideo
Latest News
- Analysis of GBP/USD on April 26th. The pound trades on Friday without changes April 26, 2024
- USD/JPY: Simple trading tips for novice traders on April 26th (US session) April 26, 2024
- GBP/USD: Simple trading tips for novice traders on April 26th (US session) April 26, 2024
- EUR/USD: Simple trading tips for novice traders on April 26th (US session) April 26, 2024
- GBP/USD: trading plan for the US session on April 26th (analysis of morning deals). The pound attempted, but it didn’t go April 26, 2024
- EUR/USD: trading plan for the US session on April 26th (analysis of morning deals). The euro continues to rise April 26, 2024
- Trading Signals for GOLD (XAU/USD) for April 26-29, 2024: buy above $2,324 and sell below $2,352 (21 SMA – 6/8 Murray) April 26, 2024
- Technical Analysis – AUDUSD set to complete best week of the year April 26, 2024
- Will Apple finally drop its AI hint? – Stock Markets April 26, 2024
- Bitcoin slips as markets pare back Fed rate cuts – Crypto News April 26, 2024
- EUR/USD. April 26th. Bulls continue to advance after the GDP report April 26, 2024
- Can Chinese PMIs solidify the economy’s recovery prospects? – Preview April 26, 2024
- Weekly Forex Outlook: 26/04/2024 – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too April 26, 2024
- XM’s Lombok Collaboration: Brightening Futures April 26, 2024
- Week Ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too April 26, 2024
- Market Comment – Yen keeps sinking after Bank of Japan decision April 26, 2024
- Fed faces dilemma amid sticky inflation and slowing economy – Preview April 26, 2024
- USD/JPY: trading tips for beginners for European session on April 26 April 26, 2024
- GBP/USD: trading tips for beginners for European session on April 26 April 26, 2024
- EUR/USD: trading tips for beginners for European session on April 26 April 26, 2024
The USD/CAD pair dropped in the short term as the Dollar Index crashed. Now, the index turned to the upside, that’s why the currency pair is trying to rebound and recover after its sell-off. Despite the strong drop, the price maintains a bullish bias.
Fundamentally, the USD is struggling to gain ground versus its rivals as the US Unemployment Claims indicator came in at 228K in the last week versus 236K expected, while Core PCE Price Index increased by 0.2% growth matching expectations.
Furthermore, Chicago PMI and Personal Spending came in better than expected as well. On the other hand, the Canadian Current Account was reported at -6.6B versus -11.1B expected, but below the -3.2B in the previous reporting period.
Tomorrow, the US Non-Farm Payrolls, ISM Manufacturing PMI, Unemployment Rate, Average Hourly Earnings, and the Canadian GDP should bring sharp movements.
USD/CAD 1.3509 Major Support!
As you can see on the H1 chart, the USD/CAD pair dropped below the uptrend line after the rate failed to reach and retest the upside line.
Now, it stands right above the 23.6% (1.3511) retracement level and above the key former low of 1.3509. Staying above these levels, the rate could come back to test and retest the broken uptrend line.
USD/CAD Outlook!
A valid breakdown below 1.3509 activates more declines. This scenario brings new short opportunities. The downside scenario could be invalidated if the rate jumps and stabilizes above the uptrend line and above the pivot point of 1.3580.
The material has been provided by InstaForex Company – www.instaforex.com
Related Posts: