USD/CAD Daily Fundamental Forecast – March 29, 2018

The USDCAD pair rose a bit during the course of trading yesterday as the pair was affected by the growth in the strength of the dollar. The dollar has been waxing and waning during the last week or so and the effect of that has been seen clearly in this pair. Even now, it is not yet very clear on who is in control of the pair and only time will tell.

USDCAD Back in Range

The dollar strength had helped the pair to climb above the region of 1.30 a couple of weeks back and once this breakout happened there was some general faith in the investor community that the breakout would hold and that the bulls would then use this opportunity to push the pair higher in due course of time. But that did not happen as the geopolitical tensions, with reports of the US government imposing tariffs, took over the control of the dollar and this led the dollar lower.

The pair crashed through the 1.30 region and it was then once again back towards the lows of the range as the pair traded in the 1.28 region following the move lower. Since the beginning of the week, the dollar has been on the path to recovery and we have been seeing the pair recover towards the 1.29 region as the pair trades just above this region as of this writing. We expect any kind of upmove to face a lot of selling in the 1.30 region which should once again act as a region of strong resistance for the short term as the market looks for direction.

Looking ahead to the rest of the day, we have the GDP data from Canada while we do not have any major economic data or news from the US and hence we should see some more ranging between the 1.28 and 1.30 regions for the rest of the day.