All Articles Tagged - USDCAD

Will the BoC resume interest rate hikes? – Forex News Preview

Posted on June 6, 2023 at 6:58 am GMT

After staying inactive for two consecutive meetings, the BoC is now expected by a decent percentage of market participants to raise interest rates when it meets on Wednesday at 14:00 GMT. The hype of another rate hike was bolstered by the much-better-than-expected GDP data for Q1. Will policymakers indeed press the button, or will they stay patient and wait for more incoming data before deciding whether raising interest rates further is appropriate? Data keeps the hike door open At its [..]

Week Ahead – RBA and BoC to hold rates but might be tempted to hike, OPEC+ meets

Posted on June 2, 2023 at 9:42 am GMT

Policy decisions from the RBA and the Bank of Canada will be taking centre stage next week amid an otherwise light agenda. In the United States, the ISM services PMI will be the only top-tier release and now that Congress has averted a default by suspending the debt ceiling, the dollar might spend the week drifting lower. Before all that however, OPEC and non-OPEC countries will meet on Sunday to discuss whether to make further cuts to oil output. Will [..]

Technical Analysis – USDCAD shifts focus to the downside after deep fall

Posted on June 2, 2023 at 8:13 am GMT

USDCAD plunged by 1.2% in the first trading day of June, sliding back below its simple moving averages (SMAs) to mark a new two-week low of 1.3417 on Friday. The fast downside correction follows the double top creation around the tough resistance of 1.3650, which raised the risk of a bearish continuation. Overall, there are barely any bullish signs in the market, although a pause or a rebound near the 1.3400 level cannot be excluded as the stochastic oscillator is quickly approaching its 20 oversold level. The [..]

Technical Analysis – USDCAD close to a key range as SMAs convergence is flashing red

Posted on June 1, 2023 at 1:14 pm GMT

USDCAD is edging lower today, hovering below the 1.3605 level. The upleg that started on May 8 almost reached the double bottom pattern’s neckline sitting at 1.3667. The pattern remains valid, but the neckline has to be broken for the USD bulls to take advantage of this bullish structure. Until this occurs, they have to fend off the bearish pressure from the USD bears. In the meantime, the Average Directional Movement Index (ADX) is stuck below its 25-threshold signaling a [..]

Loonie looks to Canadian GDP data for direction ahead of BoC decision – Forex News Preview

Posted on May 29, 2023 at 8:56 am GMT

GDP figures due on Wednesday (12:30 GMT) are expected to show that growth in the Canadian economy likely accelerated in the first quarter of 2023. The report will be the last major one before the Bank of Canada’s June 7 policy meeting. After a string of better-than-expected data lately, can upbeat GDP numbers sway policymakers to resume their rate hiking cycle? For the Canadian dollar, though, which has been rangebound against its US counterpart all year, there might be some [..]

Technical Analysis – USDCAD in bullish mode; resistance at 1.3650

Posted on May 26, 2023 at 7:50 am GMT

USDCAD bounced off its 200-day simple moving average (SMA) and went as high as 1.3653, surpassing a resistance line that had been in effect since March. The technical picture is feeding optimism for a bullish continuation. The price has bottomed out twice around 1.3300 before drifting higher and beyond its simple moving averages (SMAs). Traders are currently waiting for a decisive close above the 1.3650 neckline to confirm the positive structure. In momentum indicators, the RSI has crossed above its 50 [..]

Technical Analysis – USDCAD stuck at busy range; sizeable move coming

Posted on May 22, 2023 at 12:49 pm GMT

USDCAD is edging higher today as it continues to hover around the rather busy 1.3485-1.3533 area. This is a key range that has proven its worth both as support and resistance since September 2022. Interestingly, the aggressive convergence of the simple moving averages (SMAs) employed is usually associated with an imminent strong move, but its direction is unknown at this stage. And the momentum indicators are not really helpful. The Average Directional Movement Index (ADX) has sunk below its 25-threshold, confirming [..]

Technical Analysis – USDCAD is range-trading; the next break is key for market sentiment

Posted on May 19, 2023 at 6:46 am GMT

USDCAD is edging lower today but it appears to be in a delicate balance. It is hovering inside the rather busy 1.3482-1.3536 area, as the pair seems to be taking a breather from the downward move that commenced on March 10, 2023. The aggressive convergence of the simple moving averages (SMAs) employed here and the trendless Average Directional Movement Index (ADX) confirm the current range-trading phase. The stochastic oscillator could offer a potential way out of the current deadlock. It is hovering [..]

Canadian CPI inflation to cool further – Forex News Preview

Posted on May 15, 2023 at 2:43 pm GMT

Investors will look for clues on whether the rate cut pricing in Canada is unseasonable after the BoC chief claimed that the rate hike cycle may resume if necessary to press inflation to the target. The figures are expected to weaken for the fifth consecutive month on Tuesday at 12:30 GMT, likely creating some extra downside pressure in the Canadian dollar. Credit conditions The Bank of Canada (BoC) was the first major central bank to pause monetary tightening in March [..]

Technical Analysis – USDCAD rebounds strongly above 200-day SMA

Posted on May 12, 2023 at 7:41 am GMT

USDCAD has been generating a structure of lower highs after peaking at the 2023 high of 1.3860 in mid-March. Although the pair managed to bounce off its May low and reclaim the 200-day simple moving average (SMA), the developing bearish flag pattern is indicating that the price could soon experience a bearish breakout. The momentum indicators currently suggest that despite the recent bounce, near-term risks remain tilted to the downside. Specifically, the RSI rebounded but failed to cross above the 50-neutral [..]

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