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 position.

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)

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