USDCAD Expected Price Bounce

USDCAD, Daily

The CAD has been gaining strength in recent days as crude oil prices move higher following speculation that oil producers will reduce supplies.  Also, providing some support for the CAD is the fact that the BoC left rates unchanged when the markets were forecasting a cut by 25 basis points.  CAD traders for today should keep an eye on today’s Canadian economic calendar since on tap are the November GDP and Dec Product price Index. Also, keep an eye out for the U.S. Advance GDP q/q data released later today; this could also impact the USDCAD volatility for Friday.

Technically, for the USDCAD I am expecting a price bounce in the wake of the corrective sell off since the pair hit a multiyear high near the 1.4680’s last week.  USDCAD traders may look to enter into long positions within the “Price bounce zone” ((B1) above chart) between 1.3815 – 1.3970, for targets within the “Lower top zone” ((T2?) above chart) 1.4340 – 1.4430.

Jan 29 USDCAD SRL

Disclaimer: Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of purchase or sale of any financial instrument.

Recommended Content


Recommended Content

Editors’ Picks

AUD/USD holds above 0.6500 in thin trading

AUD/USD holds above 0.6500 in thin trading

The Australian Dollar managed to recover ground against its American rival after AUD/USD fell to 0.6484. The upbeat tone of Wall Street underpinned the Aussie despite broad US Dollar strength and tepid Australian data.

AUD/USD News

EUR/USD comfortable below 1.0800 lower lows at sight

EUR/USD comfortable below 1.0800 lower lows at sight

The EUR/USD pair lost ground on Thursday and settled near a fresh March low of 1.0774. Strong US data and hawkish Fed speakers comments lead the way ahead of the release of the US PCE Price Index on Friday.

EUR/USD News

Gold pulls away from daily highs, holds above $2,200

Gold pulls away from daily highs, holds above $2,200

Gold retreats from daily highs but holds comfortably above $2,200 in the American session on Thursday. The benchmark 10-year US Treasury bond yield stays near 4.2% after upbeat US data and makes it difficult for XAU/USD to gather further bullish momentum.

Gold News

Google starts indexing Bitcoin addresses

Google starts indexing Bitcoin addresses

Bitcoin address data is live on Google search results after users realized on Thursday that the tech giant started indexing Bitcoin blockchain data. However, mixed reactions have followed the tech giant's reversed stance on the cryptocurrency.

Read more

A Hollywood ending for fourth quarter GDP

A Hollywood ending for fourth quarter GDP

The latest revisions put Q4 GDP at 3.4%, the second fastest quarterly growth rate in two years. Much of the upside was attributable to stronger consumer spending, yet fresh profits data affirmed it was a good quarter for the bottom line as well with profits up by the most since the Q2-2022.

Read more

Majors

Cryptocurrencies

Signatures