USD/CAD Exchange Rate Prediction – The Dollar Slides Again

USD/CAD moved lower as the dollar continued to ease along with U.S. Treasury yields. This followed Friday’s speech by Fed Chair Jerome Powell who was more dovish and expected and continued to discuss that he felt that inflation is transitory. Pending Home Sales in the U.S. were weaker than expected, which weighed on the greenback. Canada’s Q2 account surplus widened.

Technical Analysis

The USD/CAD declined on Monday. Support is seen near the 200-day moving average at 1.2541. Resistance is seen near the 10-day moving average at 1.2646. . Short-term momentum has turned negative the fast stochastic generated a crossover sell signal. Medium-term upward momentum has turned negative as the MACD (moving average convergence divergence) index generated a crossover sell signal. This situation occurs as the MACD line (the 12-day moving average minus the 26-day moving average) crosses below the MACD signal line (the 9-day moving average of the MACD line).

Canada’s Current Account Widened

Canada’s quarterly current-account surplus widened during the Q2 period as exports of goods rose. The country’s current account, or the broadest indicator of Canada’s trading and investing relationship with other nations, recorded a surplus of 3.58 billion Canadian dollars, or the equivalent of US$2.84 billion, in the Q2 of 2021. Canada said, and now indicate Canada’s current-account surplus in the first three months of 2021 was C$1.82 billion, compared with an earlier estimate of C$1.18 billion.