- USD/CAD prints a new weekly high at 1.2763.
- The market sentiment remains downbeat, with the S&P 500 trading below the 50-DMA.
- WTI is falling in the session by 1.27%, dragging the loonie with it.
- Federal Election in Canada to take place on September 20.
USD/CAD is gaining ground in the session, up 0.45%, trading at 1.2739 at the time of writing. The market sentiment remains downbeat, as US stock indexes post losses caused by expiring options on Friday. The S&P 500 has broken below the 50-day moving average, risking the “buying the dip” narrative.
Additionally, oil prices that strongly correlate with the Canadian dollar are falling for the second straight day, with the WTI trading at $72.12, down 0.55%.
US Consumer Sentiment worse than expected
In the US economic docket, the University of Michigan Consumer Sentiment edged up to 71.0, still worse than the 72.2 expected by economists. The USD/CAD reaction to that headline was muted, while investors’ focus turned to next week’s Federal Open Market Committee meeting on September 21-22.
Meanwhile, in Canada, the Federal Election to take place on September 20 could spur some choppiness in the USD/CAD while the market awaits its results.
USD/CAD Price Forecast: Technical outlook
In the daily chart, the USD/CAD is trading at 1.2728. Even though the pair reached a weekly high, it unsuccessfully tested the September 8 high at 1.2762, retracing almost 40 pips afterwards. The first resistance on the upside would be the mentioned high at 1.2762. In case of a sustained break of that level, the following supply area, would be 1.2800.
On the flip side, failure at 1.2762 could pave the way for further losses. The first support would be 1.2700. In case of a break of that level, the USD/CAD could tumble to 1.2600.
The Relative Strength Index is at 58.34, aiming higher, supporting the uptrend, but macroeconomic developments should keep bulls cautious.
Technical levels to watch
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Latest Forex News
Editors’ Picks
EUR/USD stays afloat above 1.1600 as inflation data meet expectations
EUR/USD came under modest bearish pressure in the early European session and continues to have a difficult time regaining its traction. After the data from the euro area revealed that annual CPI stayed unchanged at 3.4% in September, the pair stays relatively calm above 1.1600.
GBP/USD drops below 1.3800 as UK CPIs disappoint
GBP/USD eases below 1.3800, as an unexpected decline in the UK inflation douses the BOE rate hike expectations. Covid resurgence in the UK also undermines the pound. The pair could find support from a broadly subdued US dollar and fresh Brexit optimism.
Gold: $1791 appears a tough nut to crack for XAU/USD bulls
Gold price is holding the higher ground, extending the previous advance amid a pullback in the US 10-year Treasury yields from five-month highs of 1.672%.
Crypto markets prepare for final pullback before next leg up
Bitcoin price is due for a retracement as MRI flashes a sell signal on the daily chart. Ethereum price continues to consolidate under the $3,938 resistance level. Ripple price slides below the $1.09 support level as the crypto markets prepare for a minor correction.
Tesla: Why it is time to sell TSLA stock
Tesla breaks higher again on Monday as we had called. TSLA to release earnings after the close on Wednesday. Is it time to sell Tesla stock now before earnings?