Corona Virus
Stay Safe, FollowGuidance
Fetching Location Data…
Colin First

The USD/CAD pair rose to its highest trading-level since March 21st on Monday, briefly moving above the key 1.3000 handle and hitting an intraday high of 1.3021. The USD/CAD pair fared well in thin Bank Holiday trading conditions, with the U.S. Dollar Index continuing to trade well above the 94.00 level while U.S. oil prices fell over one percent lower on the day. During Asian market hours of Tuesday, the pair saw slight ease of momentum as the pair fell back into 1.29 handle but has since then managed to move range bound between 1.2980 to 1.3011 price ranges. CAD traders are likely to become increasingly cautious as the Bank of Canada policy decision approaches tomorrow. The BOC is expected to keep interest rates on hold at this week’s meeting as NAFTA tensions linger, although future rate hikes remain possible as the Canadian economy is faring well with low domestic unemployment, stable inflation, and rising oil prices. However the macro calendar has no update in Canadian market session today.


The positive tone around the greenback remains intact, today supported by risk aversion. Also, crude oil prices weigh on the Loonie. The WTI was trading at $66.65, 8.4% below the level it had a week ago. When looking at the pair in technical perspective, we can see that strong upside momentum continues to dominate the US Dollar against the Canadian Dollar as the pair has been supported by the 55– hour simple moving average since last week.


If the pair manages to hold above 1.2900 level till BOC decision and if the BOC interest rate remains unchanged as expected we can see an increase in Bid action in favor of US greenback which could help the pair breach March 2018’s high at 1.31247 and ascend onto new uptrend movement. However bull and bear are both at war over control for the pair’s momentum and a fall below 1.2930 before BOC interest rate decision could result in favor of Loonie gaining the upper hand. Expected support and resistance for the pair are at 1.2990 /1.2955 /1.2925 and 1.3050 /1.3080 /1.3085 respectively.

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

Trade With A Regulated Broker

  • Your capital is at risk
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.
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.