USD-CAD Bulls Regain Strength After Sharp Decline
The USD/CAD forex pair, popularly known as the “Loonie,” reflects the currency exchange rate between the US dollar (USD) and the Canadian dollar (CAD). Being heavily influenced by crude oil prices due to Canada’s significant energy sector, the pair is sensitive to economic indicators from both nations. Today, key releases such as the ADP Non-Farm Employment Change, ISM Non-Manufacturing PMI, JOLTS Job Openings, and the Federal Reserve’s commentary will substantially impact the USD. Positive results in employment data or hawkish comments from Fed Governor Michelle Bowman would likely strengthen the USD, creating upward pressure on USD-CAD. Conversely, robust Ivey PMI results from Canada could support the CAD, potentially limiting USD/CAD gains.
Chart Notes:
• Chart time-zone is UTC (+02:00)
• Candles’ time-frame is 4h.
Analyzing the USD/CAD H4 chart, the candles had been declining sharply until reaching the critical support level at 1.36529. A bullish momentum has since emerged, breaking the previous resistance. Observing the Fibonacci retracement levels, the bullish momentum could propel prices up toward the 0.382 retracement at 1.38304, potentially initiating a bearish or consolidative phase. The Bollinger Bands (50) are expanding, suggesting upcoming consolidation or volatility increase. MACD (12,26,9) histogram indicates bullish momentum at 0.00202, with lines positive at 0.00050 and 0.00252. However, RSI (14) at 72.85 signals an overbought condition, which could lead to a temporary pullback or sideways movement before further bullish activity.
•DISCLAIMER: Please note that the above analysis is not an investment suggestion by “Capitalcore LLC”. This post has been published only for educational purposes.
