USD/CAD appears to have paused its downswing after testing key assist ranges.
May this be the springboard for a bounce within the coming days?
Right here’s the 4-hour chart we’re watching!
USD/CAD 4-hour Foreign exchange Chart by TradingView
USD/CAD has been trending decrease since final week, as rising expectations for a Fed price reduce have dragged the greenback down, regardless of some safe-haven demand providing restricted assist.
On the similar time, stronger-than-expected Canadian CPI studies cooled expectations for a Financial institution of Canada price reduce. That helped raise the Loonie, even with world commerce jitters and softer oil costs within the combine.
Keep in mind that directional biases and volatility situations in market worth are sometimes pushed by fundamentals. In case you haven’t but performed your fundie homework on the Canadian greenback and the U.S. greenback, then it’s time to take a look at the financial calendar and keep up to date on each day elementary information!
Is USD/CAD performed with its downswing? The pair turned decrease from the 1.3750 space and is now hovering close to the 1.3600 psychological stage which may be the underside of a triangle sample.
That zone traces up with the S2 Pivot Level at 1.3616 and a pattern line assist that’s held since mid-June.
Maintain a watch out for bullish candles and a stable maintain above 1.3600. That would open the door for a bounce towards the S1 zone at 1.3668 and even the 1.3721 Pivot Level.
But when we see extra crimson and a clear break under 1.3600, the pair might keep on its downtrend path. Sellers would possibly intention for the 1.3550 lows or take a shot at contemporary 2025 lows.
Whichever bias you find yourself buying and selling, don’t neglect to follow correct threat administration and keep conscious of top-tier catalysts that would affect general market sentiment.
Disclaimer:
Please bear in mind that the technical evaluation content material offered herein is for informational and academic functions solely. It shouldn’t be construed as buying and selling recommendation or a suggestion of any particular directional bias. Technical evaluation is only one side of a complete buying and selling technique. The technical setups mentioned are meant to focus on potential areas of curiosity that different merchants could also be observing. In the end, all buying and selling choices, threat administration methods, and their ensuing outcomes are the only real duty of every particular person dealer. Please commerce responsibly.
