USD/CAD Price Analysis: Stuck between a rock and a hard place


  • USD/CAD trades just above flat at 1.3185 on Tuesday.
  • The pair is in full consolidation mode between 1.3135-1.3242.

USD/CAD 4-hour chart

USD/CAD has been moving lower for a while and now on this timeframe you can see some hesitation. This probably because there is the FOMC meeting on Wednesday. Markets often go through a consolidation period leading into big events. The Fed has spoken about the need for fiscal stimulus and it just does not look like it's coming anytime soon. The question is will the bank get fed up and do their own additional stimulus once again.

Looking at the chart, the price has bounced off the red support level at 1.3135 once again. Now the bulls will be eyeing the previous wave high at 1.3259 to get the trend changing back to the upside. 

This is still a downtrend and this current move could be just a retracement but the market seems to be waiting for the next paradigm shift before deciding. There are lots of upcoming catalysts, the US election, Fed policy and even the COVID-19 vaccine could important.

The indicators are currently turning bullish. The MACD histogram bars are red but diminishing in size. The signal lines are above the mid-level which is positive and the Relative Strength Index has crossed the 50 point to the upside. 

Tomorrow evening will be very important when looking to forecast the future trajectory of the pair and a break of these level mentioned in the chart can help control risk and even help trigger positions. 

USD/CAD Pre FOMC

Additional levels

USD/CAD

Overview
Today last price 1.3186
Today Daily Change 0.0010
Today Daily Change % 0.08
Today daily open 1.3176
 
Trends
Daily SMA20 1.3144
Daily SMA50 1.3309
Daily SMA100 1.3531
Daily SMA200 1.352
 
Levels
Previous Daily High 1.3197
Previous Daily Low 1.3153
Previous Weekly High 1.326
Previous Weekly Low 1.3053
Previous Monthly High 1.3451
Previous Monthly Low 1.302
Daily Fibonacci 38.2% 1.317
Daily Fibonacci 61.8% 1.318
Daily Pivot Point S1 1.3154
Daily Pivot Point S2 1.3132
Daily Pivot Point S3 1.311
Daily Pivot Point R1 1.3197
Daily Pivot Point R2 1.3219
Daily Pivot Point R3 1.3241

 

 

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