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USD/CAD Daily Fundamental Forecast – June 16, 2017

By:
Colin First
Published: Jun 16, 2017, 04:16 UTC

We had mentioned in our forecast yesterday that the USDCAD pair was likely to see a bounce during the course of the day yesterday which would be a deadcat

USD/CAD Daily Fundamental Forecast – June 16, 2017

We had mentioned in our forecast yesterday that the USDCAD pair was likely to see a bounce during the course of the day yesterday which would be a deadcat bounce and more a small correction of the downtrend that we are seeing rather than a change of trend. We had also mentioned that this bounce would carry the pair towards the 1.3300 region and thats exactly the price action that we saw yesterday.

USDCAD To Continue its Downtrend

The pair moved to the 1.3300 region and went as high as 1.3315 before a lot of selling came in at that region and the pair has since settled back below 1.33 as of this writing. The move up was helped by the strength in the dollar which has been the dominant theme in the markets over the last couple of days ever since the Fed hiked the interest rates and also kept the door open for further rate hikes towards the end of the year. This is what the dollar bulls had been craving back over the last few weeks and they have hit back strong since then which has helped the dollar climb against all the other currencies.

USDCAD Hourly
USDCAD Hourly

The CAD did not have any fundamentals to fall back upon with no specific economic news out of Canada and also with the oil prices holding steady near the lows of its range. Hence the CAD chose to trade in a steady manner which was also one of the reasons why the dollar strength could push the pair higher. But now that the correction of the downtrend is complete, we can expect the downtrend to continue in the short and medium term as the market comes to terms with the changed dynamics as far as the rate hikes in US and Canada are concerned. For today, we can expect some consolidation as we approach the end of the week.

We do not have any major news from the US or Canada for the rest of the day and that is why it is safe to assume that we are likely to see ranging below the 1.3300 mark with the bias to the downside.

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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