- USD/CAD holds ground below 1.3550 ahead of the US data.
- MACD suggests a potential momentum shift in the upward trajectory of the Loonie pair.
- 1.3500 psychological level emerges as the immediate support, following the 38.2% Fibonacci retracement.
USD/CAD continues its five-day losing streak, maintaining a negative bias and trading around 1.3540 during the early hours of the European session on Thursday. This downward pressure on the pair could be attributed to the rise in crude oil prices.
Market participants will likely monitor the upcoming data releases from the United States (US), including the Core Producer Price Index (PPI) and Retail Sales figures for August. These data sets will offer insights into economic activities in the US and can help traders in formulating their strategies for trading the USD/CAD pair.
The pair could encounter initial support around the 1.3500 psychological level, following the 38.2% Fibonacci retracement at 1.3466. A break below that level could influence the USD/CAD pair to navigate the region below the 1.3450 psychological level.
On the upside, an immediate barrier for the USD/CAD pair appears around the 23.6% Fibonacci retracement at 1.3553, followed by the nine-day Exponential Moving Average (EMA) at 1.3575.
A firm break above the 1.3600 psychological level could provide support for US Dollar (USD) buyers, allowing them to potentially target the area around the weekly high at 1.3636 following the 1.3700 psychological level.
The Moving Average Convergence Divergence (MACD) line remains above the centerline but shows divergence below the signal line. This configuration suggests a potential momentum shift in the market, which can be seen as a signal that the recent upward trend may start to weaken.
Traders of the USD/CAD pair will likely observe the 14-day Relative Strength Index (RSI), which suggests no significant momentum in either direction in the short term as it lies on the 50 level.
USD/CAD: Daily Chart
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.
Recommended content
Editors’ Picks
AUD/USD holds below the 0.6400 mark ahead of the Australian CPI
The AUD/USD pair remains under selling pressure and drops below 0.6400 during the early Asian session on Wednesday. The pair is weighed by the negative sentiment and a decline in commodity prices. The pair trades around 0.6394, losing 0.03% on the day.
EUR/USD consolidates losses below 1.0600
EUR/USD extended its negative streak to six days, posting its lowest daily close since March 8 below 1.0600. The pair bottomed at 1.0561 and then rebounded timidly. The US Dollar remains firm, benefiting from risk aversion.
Gold remains on the defensive near $1,900 amid the USD demand
Gold price attracts some sellers around $1,902 during the early European session on Wednesday. Precious Metal faces some selling pressure due to a rally of the US Dollar (USD) ahead of the highly-anticipated inflation data on Friday.
Ethereum Restaking - The next big thing after liquid staking?
Ethereum introduced unstaking this year, and the crypto market witnessed a stark shift. The Decentralized Finance (DeFi) space, in particular, observed the emergence of liquid staking protocols. With the discourse of “restaking” picking up heat, it seems like the market is getting ready for the next big thing.
Australia Monthly CPI Preview: Inflation expected to rebound in August
The Australian Monthly Consumer Price Index (CPI) inflation data for August will be published by the Australian Bureau of Statistics (ABS) on Wednesday at 01:30 GMT. The data could be critical for the Australian Dollar (AUD) and the Reserve Bank of Australia (RBA).