USD/CAD Daily Fundamental Forecast – March 23, 2017

The USDCAD continues to range between 1.33 and 1.34, as we had mentioned in our forecast yesterday. The dollar did try to make a brief recovery during the early part of the day but the fears and the risks gripped the markets later in the day which made the dollar fall across the board and so we now trade just above 1.33 in this pair as of this writing. It has been tough for the bulls to push the pair higher but credit has to be given to them for trying their best to keep the pair buoyant despite continuing good economic data from Canada and also despite the dollar weakening.

USDCAD in Range Mode

The market will now be looking forward to the US session today when the repeal of Obamacare will be taken up for voting and it is important for Trump that this goes through. If it fails, then it could turn bad for the dollar and we could see the dollar falling across the board. But for the medium term, we believe that the range between 1.30 and 1.35 is well established and there should be no threat to the traders as long as they keep their trades between the extremes of this range. But looking at the time that the pair is spending between 1.33 and 1.34, it is becoming obvious that the bulls are making their best effort to increase the bottom of the range in an effort to move the range higher.

The pair has been caught in this 500 pip range for many weeks now and it is important for the bulls not to get tired of this range and to keep pushing. The fundamentals are certainly in their favor with the oil prices floundering and with the BOC still worried about the economy but on the other hand, the dollar is also floundering and this is making it difficult for the bulls to push through.

Looking ahead to today, we do not have any major news from Canada but we do have the unemployment claims data and also the speech from Yellen and the voting on Obamacare which should keep the markets volatile.