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USD/CAD Daily Fundamental Forecast – February 21, 2017

By:
Colin First
Published: Feb 21, 2017, 06:49 UTC

USDCAD finally made a move to get out of the rut that it has been in recent times. We have been mentioning in our daily forecasts that the pair has been

USD/CAD

USDCAD finally made a move to get out of the rut that it has been in recent times. We have been mentioning in our daily forecasts that the pair has been consolidating and ranging and waiting for a break in either direction depending on how the fundamentals pan out and with the dollar managing to strengthen across the board over the past 24 hours or so, it has provided just the excuse that is needed for the bulls to push up this pair beyond 1.31 and make it look bullish again.

It has to be noted that the pair is not out of the woods as yet and the bulls cannot relax. It has just moved to the highs of the range and it could return back to the support anytime as the dollar strength has not been as stable as we have been expecting. The market also seems to be building towards the FOMC meeting minutes that is scheduled to be released tomorrow and the market believes that the minutes would be hawkish based on the hawkish comments from the various Fed members over the last few weeks. We also have the possibility of a rate hike as early as in March and with the markets also settled down with respect to Trump and his team, the signs are good as far as the dollar bulls are concerned. So, with the support region as the base, we expect the bulls to regain control in this pair in the short and medium term and we continue to believe in the uptrend in this pair.

USDCAD Hourly
USDCAD Hourly

Looking ahead to the rest of the day, we do not have any major economic news in the US or Canada and so we expect the US dollar strength to continue to grow as we move closer and closer to the FOMC minutes and this should keep the USDCAD pair well bid.

About the Author

Colin specializes in developing trading strategies and analyze financial instruments both technically and fundamentally. Colin holds a Bachelor of Engineering From Milwaukee University.

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