USD/CAD Price Analysis: Stuck in tight range below 1.3700


  • USD/CAD oscillates in a tight range below 1.3700 ahead of crucial US economic data.
  • The US inflation data will impact Fed rate-cut prospects for September.
  • USD/CAD trades in a Descending Triangle pattern, suggesting indecisiveness among investors.

The USD/CAD pair stays on sidelines below the round-level resistance of 1.3700 in Tuesday’s European session. The Loonie asset consolidates as investors await the release of the United States Producer Price Index (PPI) and the Consumer Price Index (CPI) data for April, which will be published at 12:30 GMT and on Wednesday, respectively.

US producer and consumer inflation readings will provide fresh cues about the Federal Reserve’s (Fed) inflation outlook. The CME FedWatch tool indicates that the September meeting will be the earliest point from when the central bank will start reducing interest rates.

Meanwhile, the market sentiment is cautious ahead of US inflation data. S&P 500 futures remain flat in the European session. The US Dollar Index (DXY) rebounds from the crucial support of 105.00.

The Canadian Dollar attains a firm footing as strong Canadian job data for April has shaken investors’ confidence about the Bank of Canada (BoC) to begin reducing interest rates from the June meeting. Statistics Canada reported that Canadian employers hired 90.4K job-seekers in April, significantly higher than the consensus of 18K. In March, the job market recorded a lay-off of 2.2K employees. The Unemployment Rate remains steady at 6.1% while investors estimated the joblessness to rise to 6.2%.

USD/CAD oscillates in a Descending Triangle chart formation on a daily timeframe. The downward-sloping border of the above-mentioned chart pattern is plotted from April 16 high at 1.3846, while the horizontal support is placed from March 19 high at 1.3614. The 20-day Exponential Moving Average (EMA) at 1.3684 continues to act as a major barricade for the US Dollar bulls.

The 14-period Relative Strength Index (RSI) remains inside the 40.00-60.00 range, suggesting a sharp volatility contraction.

Fresh buying opportunity would emerge if the asset breaks above April 30 high at 1.3785. This would drive the asset towards April 17 high at 1.3838, followed by the round-level resistance of 1.3900.

In an alternate scenario, a breakdown below May 3 low around 1.3600 will expose the asset to the April 9 low around 1.3547 and the psychological support of 1.3500.

USD/CAD daily chart

USD/CAD

Overview
Today last price 1.3671
Today Daily Change 0.0005
Today Daily Change % 0.04
Today daily open 1.3666
 
Trends
Daily SMA20 1.3709
Daily SMA50 1.3624
Daily SMA100 1.3533
Daily SMA200 1.3565
 
Levels
Previous Daily High 1.369
Previous Daily Low 1.3661
Previous Weekly High 1.3763
Previous Weekly Low 1.3618
Previous Monthly High 1.3846
Previous Monthly Low 1.3478
Daily Fibonacci 38.2% 1.3672
Daily Fibonacci 61.8% 1.3679
Daily Pivot Point S1 1.3655
Daily Pivot Point S2 1.3643
Daily Pivot Point S3 1.3626
Daily Pivot Point R1 1.3684
Daily Pivot Point R2 1.3701
Daily Pivot Point R3 1.3713

 

 

Share: Feed news

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


Recommended content

Editors’ Picks

GBP/USD consolidates above 1.2700 mark as traders await BoE policy update

GBP/USD consolidates above 1.2700 mark as traders await BoE policy update

GBP/USD ticks lower on Thursday and snaps a three-day winning streak to the weekly top. The USD draws support from rebounding US bond yields and exerts pressure on the major. The downtick lacks follow-through as traders look to the BoE before placing directional bets.

GBP/USD News

EUR/USD escapes Wednesday’s holiday volatility trap, set for wait to meaningful data

EUR/USD escapes Wednesday’s holiday volatility trap, set for wait to meaningful data

EUR/USD cycled on Wednesday with US markets out for a midweek holiday, and the Fiber heads into the back half of the trading week with mid-tier data on the offering, leaving investors to look ahead to Friday’s PMI activity figures for meaningful data releases to drive sentiment in either direction.

EUR/USD News

Gold: Will XAU/USD buyers recapture key resistance near $2.340?

Gold: Will XAU/USD buyers recapture key resistance near $2.340?

Gold price regains upside traction early Thursday after the Juneteenth holiday lull. The US Dollar pauses its decline as Treasury bond yields edge higher amid risk aversion. The daily RSI gradually moves above the midline, supporting the Gold price upside.

Gold News

Bitcoin price continues to plummet as whale activities deepen

Bitcoin price continues to plummet as whale activities deepen

Bitcoin's price fell below $65,000 on Wednesday following Increased whale activities that may be sell orders. Meanwhile, hedge funds have experienced a drag in their Bitcoin exposure, which may be fueled by consistent outflows among Bitcoin ETFs.

Read more

Will the BoE signal that rate cuts are looming?

Will the BoE signal that rate cuts are looming?

At its latest gathering, the Bank of England appeared dovish enough to encourage market participants to assign a decent chance for a first quarter-point rate cut in June, but that didn’t last for long as the hotter-than-expected inflation data for April prompted investors to take their summer rate cut bets off the table.

Read more

Forex MAJORS

Cryptocurrencies

Signatures