Currency Analyst Views about USDCAD

Currency Analyst Views

What is USDCAD

Because of the massive amount of cross-border commerce that
happens between the United States and Canada, the US Dollar vs. the Canadian dollar is a particularly popular currency combination. Because of the huge
amount of natural resources, particularly oil, that are extracted and sold to
southern neighbors, the CAD is classified as a commodity currency. The USDCAD
is one of the world’s most popular currency pairings.


The United
States delivers its preliminary GDP, jobless claims, and Federal Reserve Chair Jerome
Powell speaks on Friday; thus, Canada will be relatively quiet this week. After
reaching new highs, the USDCAD has bottomed out and fallen a little more than
1% in the previous two trading days. The direction in which the pair moves this
week will most likely be influenced by the USD news this week.


I anticipate
the US will either beat predictions by a little margin this week, or the figure
will be lower than last week, based on recent jobless claims statistics. Early
in the week, the pair may continue to go lower, but if it hits a specific
level, I feel it has a good chance of rebounding to the upside. Expect further
volatility when Powell talks later this week, as well as at the Jackson Hole
Symposium on Thursday.

After achieving
new highs above the 1.2950 level, the USDCAD 1D chart stays bullish. Price has
broken out of its consolidation zone for the second time, which might serve as
a fresh level of support. If price decides to return to these levels,
1.2600-1.2500, I feel there is some opportunity in playing the long side of
this pair. Fibo levels support my estimates, and we may see a solid support
level at 1.2590, which is 61.8 percent, and close to the 50% level, 1.2480. In the
next days, MACD is also indicating positive movements. The EMAs of 20,50, and
200 are not yet aligned, but at provided support levels, they may support our

So, stay long
from given levels to earn good profit in coming days.

“Trading is an
art of decision making”

The analysis is done by: Syed Faisal (Techincal Analyst of Stocks and currencies)

Leave a Comment

Your email address will not be published. Required fields are marked *