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Usdcadforecast

USDCAD Long US jobs indicator signals early signs of stress, CAD rides positive momentum after BoC hike Bearish momentum accelerates as CAD continues positive momentum – ‘death cross’ and major support will be tested nitial jobless claims out of the US flashed another early warning signal regarding the otherwise robust job market. 261 thousand people were newly unemployed as of the week of 3 June and represented the second time in recent prints that the data point exceeded estimates. As a result, the dollar sold-off, seeing an extended move to the downside for USD/CAD The pair now shows renewed downside momentum and has broken beneath the longer-term channel that has contained the majority of price action. In fact, the move now tests the long-term trendline support that has witnessed multiple tests, none of which were successful. The ‘death cross’ - circled in orange – provides further indications of a bearish continuation from here. A daily and weekly candle close below the trendline would naturally have bears looking at 1.3230 as the next level of support with the level coinciding with the November 2022 swing low. Breakouts often retrace to retest support/resistance and so a true test of a potential bearish breakdown would be a successful test of the trendline which would effectively become resistance, and subsequent selling thereafter. Should CAD momentum wane and the US dollar look to claw back lost ground, a hold of trendline support will be key. If the bearish momentum were to falter, 1.3503 would be the next level of interest with an invalidation of the bearish viewpoint around 1.3600 and 1.3650. The weekly chart reveals the 61.8% and 50% Fibonacci retracements of the major 2020 to 2021 sell-off - roughly the zone that has been housing price action for the last quarter of 2022 and 2023 this far. Canadian employment data may attract a few more eyes than normal given the uptick in US initial jobless claims yesterday – which caused a notable response in the dollar and highlights FX market’s sensitivity to incoming data. Next week crucial US inflation data provides another opportunity for core inflation to finally move below the recent 5.5% - 5.7% multi-month range. A softer inflation print could see downward revisions in future rate expectations and may see the USD/CAD head even lower from here. After the RBA and BoC surprised markets with hikes in June, could the Fed follow suit? In my opinion I think it would be a tough ask, given how vocal prominent members of the Fed have been about voting to forgo a hike next week with the possibility of a hike in July should the data necessitate one. The Fed will also release its quarterly summary of economic projections which ought to provide markets with a better idea of the economic outlook. US PPI will also factor into the inflation conversation but any surprises there will need to be factored into next month’s FOMC meeting. Granted USD/CAD has been sideways for months, but conditions could be getting ripe for a trend. USD/CAD is testing vital converged support around 1.3220-1.3320, a break below which could clear the way for a drop initially toward the psychological 1.3000, potentially toward the August low of 1.2725. Moreover, the IG Client Sentiment (IGCS) shows 70% of retail traders are net-long with the ratio of long to short at 2.3 to 1. The number of traders net-long is a whopping 74% higher from last week. RSI above 200. Trend Bullish. The Canadian dollar may have just received the boost to extend gains against some of its peers, thanks to the Bank of Canada’s (BOC) hike on Wednesday. BOC hiked its overnight rate to a 22-year high of 4.75%, saying “concerns have increased that CPI inflation could get stuck materially above the 2% target.” The central bank, however, dropped the April language saying it “remains prepared to raise the policy rate further”, making it more data dependent. Markets are pricing in another rate hike in July, with the terminal rate seen at 5.15% by the end of the year.
Long
by DaveBrascoFX
1
USDCAD Potential ReversalIn my opinion, USDCAD appears to be showing signs of a potential reversal as it forms a falling wedge pattern on the 1-hour timeframe, with the current price finding support at a specific level. The falling wedge pattern typically indicates a bullish reversal, suggesting that the downward momentum may be weakening. Considering this pattern and the support level, traders might consider a potential long position on USDCAD. However, it's important to manage risk effectively. Setting a stop loss at 1.3276 can help limit potential losses if the market moves against the anticipated reversal. Additionally, a take profit level of 1.3439 can be considered as a target to capture potential gains. Looking forward to read your opinion about it.
Long
by TopgOptions
USDCAD Long Term Buying IdeaHello Traders In This Chart USDCAD DAILY Forex Forecast By FOREX PLANET today USDJPYD analysis 👆 🟢This Chart includes_ (USDCAD market update) 🟢What is The Next Opportunity on USDCAD Market 🟢how to Enter to the Valid Entry With Assurance Profit This Video is For Trader's that Want to Improve Their Technical Analysis Skills and Their Trading By Understanding How To Analyze The Market Using Multiple Timeframes and Understanding The Bigger Picture on the Charts.
Long
by forexplanet797
Is it time to add buys in USD/CAD? Detailed analysis below!Dear traders, after Bank of Canada's rate event yesterday, USD/CAD dropped to the 1.3321 level. However, the fall was arrested as it is a strong support level . Based on the current price action, it seems the 1.3320 support level would continue to hold. So, if price action becomes bullish at this level and the support level stays unbroken, traders can consider going long USDCAD@1.3320 with SL below 1.3250 and TP at 1.3650 .
Long
by YourLazyTrader
USD/CAD: Consolidation Calm Before the Storm? The USD/CAD has been consolidating since late last Friday. Key levels include 1.346 and 1.345 for the upper bound and 1.341 and 1.340 for the lower bound. The market appears to be in the middle of the storm that might be unleashed after the Bank of Canada’s (BoC) interest rate decision on Wednesday. In January, the BoC made history by being the first major global central bank to stop its rate-hiking cycle and has kept rates unchanged at its last two policy meetings. However, the economy's unexpectedly robust performance since then has placed the bank in a challenging position and will test its determination to maintain a neutral stance. After declining from its peak at 8.1% in 2022, inflation in Canada unexpectedly experienced its first increase in 10 months, surging to 4.4% in April from 4.3% in March. The increase is being attributed to the recent rebound in Canada's housing market. The current market consensus is for an approximately 40% to 45% chance of a 25-basis-point interest rate hike on Wednesday. According to some, this is underestimating the possibility of a rate hike. Which means that the lower bounds of the current consolidation band could easily be tested (and broken) in the lead up to the interest rate decision. On the other side of the trade, the US dollar faced obstacles as it was revealed that the US services sector experienced minimal growth in May, primarily due to a slowdown in new orders. This news brought an end to the initial surge in the USD, which was triggered by incredibly robust job growth.
by BlackBull_Markets
3
USDCAD Daily Long Term Buying IdeaHello Traders In This Chart USDCAD DAILY Forex Forecast By FOREX PLANET today USDJPYD analysis 👆 🟢This Chart includes_ (USDCAD market update) 🟢What is The Next Opportunity on USDCAD Market 🟢how to Enter to the Valid Entry With Assurance Profit This Video is For Trader's that Want to Improve Their Technical Analysis Skills and Their Trading By Understanding How To Analyze The Market Using Multiple Timeframes and Understanding The Bigger Picture on the Charts.
Long
by forexplanet797
UsdCad- 1.33 in focus (update)Yesterday I draw attention to a potential double top for UsdCad. Indeed, after an anemic and short-lived rally to 1.3584, the pair broke under the neckline's support and dropped like a stone after. At the time of writing the price is 1.3440 and in the eventuality of a correction, this should be used as a selling opportunity. In conclusion, I remain strongly bearish UsdCad, and rallies (if they will exist) towards 1.35 should be sold. Neck-line support is now resistance and should offer us a point of negation and the target is 1.33 zone support
Short
by Mihai_Iacob
5