USDCAD setting up for sell opportunitiesHello,
USDCAD is gearing up for a potential drop on the 8-hour timeframe. From a technical perspective, the pair is currently in a corrective phase after a strong bearish move from the recent highs. As price nears key moving averages, we anticipate the correction to complete, paving the way for another leg down. The MACD is also approaching the zero line, signaling that sellers could be preparing to take control.
On the fundamental side, this week is packed with high-impact events that could drive volatility. Key catalysts include:
Wednesday: FOMC meeting minutes release & a speech from President Trump.
Thursday: Initial jobless claims and crude oil inventory data.
Friday: S&P Global Manufacturing PMI and Global Services PMI.
These events are expected to influence the US dollar significantly. A weaker dollar could favor further downside in USDCAD. Additionally, trade policy remains a major market driver—Trump had initially imposed tariffs on Canada but later postponed them for a month, adding another layer of uncertainty.
With both technical and fundamental factors aligning, we maintain a bearish outlook on USDCAD in the near term. You can trade this pair using brokers that integrate with TradingView. tradingview.com/brokers/ such as TradeNation.
Good luck!
