FXEMPIRE
All

USD/CAD Daily Price Forecast – USD/CAD Stuck at 1.31 Handle amid Subdued US Greenback

The pair continues to trade near the lows of its range as it tries to stage a rebound from the lows over the last couple of days
Colin First
USDCAD Weekly
USDCAD Weekly

The USD/CAD pair lacked any firm directional bias and seesawed between tepid gains/minor losses through the early European session on Wednesday. The pair stalled overnight rejection slide from the 1.3200 neighborhood and found some support near the 1.3140-30 region amid subdued US Dollar price action. Ahead of a key meeting between the US President Donald Trump and European Commission President Jean-Claude Juncker, the greenback remained stuck in a narrow band and did little to provide any meaningful lift. Meanwhile, crude oil prices remained supported by overnight API report that showed a fall of 3.16 million barrels in the US inventories for the week ending July 21, which underpinned demand for the commodity-linked currency – Loonie and further collaborated towards keeping a lid on any meaningful up-move for the major.

USDCAD Stable

The pair gained upper hand during Tuesday’s trading session over spike in US Treasury bond yields and this upward momentum remained solid across Tuesday and early Asian market hours on Wednesday post which the pair began its steady decline. As investors took to cautious stance ahead of the trade talk meet in US, the greenback lost its momentum which along with Loonie supported by Crude oil price action caused the pair to take a dovish stance. The pair is currently trading at 1.3134 with 0.15% decrease in value and is expected to continue a downtrend movement trapped above 1.3100 price handle during European market hours.

USDCAD Hourly

In absence of any major market-moving economic data, traders are likely to take cues from the official EIA report on the US crude oil inventories. The key focus, however, would be on this week’s other US macro releases, particularly the advance Q2 GDP growth figures, which should assist investors to determine the pair’s next leg of directional move. Any meaningful downfall is likely to find support near the 1.3115 level, below which the pair is likely to aim towards testing 50-day SMA support near the 1.3090 region. On the upside, momentum beyond the 1.3165-70 immediate resistance might continue to confront fresh supply near the 1.3200 handle, which if cleared might trigger a near-term short-covering bounce.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US