USDCAD Analysis
| Performance after Wednesday | |||
| Period | Pct | Chg | Momentum |
| Wednesday | -0.1% | -14.0 Pips | ▼ |
| Week to-date | -0.79% | -112.0 Pips | ▼ |
| July | -1.08% | -154.0 Pips | ▼ |
Upcoming key events (GMT+8)
| Time (GMT+8) | Currency | Impact | Event |
| Thu 08:30 PM | USD | HIGH | Monthly Retail Trade (1-mth) |
| Fri 10:00 PM | USD | HIGH | Index of Consumer Sentiment |
What happened lately
The USDCAD currency pair experienced a slight decline on Wednesday, falling by 0.1% to close at 1.40410. The trading session saw the pair reach a high of 1.40770 and a low of 1.40230.
In terms of economic data, the U.S. Producer Price Index (PPI) excluding Food and Energy sectors was reported at 4.7% for the 12-month period, slightly below the consensus expectation of 5.2% but marginally higher than the previous reading of 4.6%. Meanwhile, the Bank of Canada maintained its policy interest rate at 2.25%, aligning with both the consensus and the previous rate.
Looking ahead, market participants will be focusing on upcoming U.S. economic events, including the Monthly Retail Trade data scheduled for release on Thursday at 8:30 PM GMT+8, and the Index of Consumer Sentiment on Friday at 10:00 PM GMT+8. Both events are expected to have a high impact on the market.
The recent price movement in the USDCAD pair reflects a cautious market sentiment, with traders likely weighing the implications of the slightly softer-than-expected U.S. PPI data and the steady Canadian interest rate. The upcoming U.S. economic releases could provide further direction for the pair as investors assess the health of the U.S. economy and its potential impact on currency valuations.
What can we expect from USDCAD today?
The USDCAD pair closed slightly lower on Tuesday, down 0.1% at 1.40410, with a bearish daily outlook. Traders are closely watching key technical levels for potential movements today.
📈 Bull Scenario A bullish scenario for USDCAD could be triggered if the pair manages to break above the daily pivot at 1.4047. Further upward momentum may push the price towards the first resistance level at 1.4071, with the next target at the second resistance level of 1.4101. The rising stochastic in the oversold zone suggests a potential for upward movement if buying interest increases. | 📉 Bear Scenario On the downside, a bearish scenario might unfold if USDCAD falls below the first support level at 1.4017. A sustained move lower could see the pair testing the second support level at 1.3993. The overall bearish daily and weekly outlooks, along with the price trading below the 9-day EMA, support the potential for further declines. |
Key levels to watch out:
| R3 | 1.4125 |
| R2 | 1.4101 |
| R1 | 1.4071 |
| Daily Pivot | 1.4047 |
| S1 | 1.4017 |
| S2 | 1.3993 |
| S3 | 1.3963 |