The USD/CAD has produced a rather consolidated trading ground after retesting near-term highs yesterday and then reversing lower.
The USD/CAD is near the 1.36225 ratio as of this writing. Speculators must contend with the USD/CAD as it hovers in what appears to be the middle ground of its near-term range, but at the same time seems intent on remaining within the upper limits of its one month trend. Gross Domestic Product numbers from Canada this past Tuesday came in slightly weaker than expected, showing recessionary pressures remain high in the nation.
The USD/CAD traded at its low for the week on Monday near the 1.35325 ratio, this before reversing higher on Tuesday before the ‘growth’ numbers. The USD/CAD promptly reversed lower after these GDP statistics were weaker, but perhaps importantly did not retest the lows seen before, ‘only’ falling to a mark around 1.35625.
Both U.S and Canadian economic data have created an unclear vantage point for the USD/CAD. The U.S Federal Reserve is still expected to raise its interest rate on the 22nd of March, but this has already been priced into the USD/CAD. The currency pair has trended higher the past month, which has correlated to the broad Forex market.
Resistance for the USD/CAD short-term technically looks to be the 1.36300 ratio, but this mark needs to be considered as part of a consolidated mode which has developed in the past handful of hours. Traders should certainly look to see what the current price of the USD/CAD is while reading this article to see if this nearby ratio has held as resistance.
Support is also rather evident around the 1.36040 ratio. The notion that what appears to be a lower level regarding technical support, could become a price target for traders who want to pursue downwards momentum for short-term wagers is intriguing. The U.S will release weekly Unemployment Claims data later today and this may produce a dash of firepower for the USD/CAD.
- The seemingly rather tight price range in the USD/CAD may not last long.
- Traders who want to pursue the currency pair with quick hitting goals using technical perceptions may find an intriguing betting landscape however in the near term.
- Choppy condition in the USD/CAD may persists in the coming days as financial houses brace for next week’s Non-Farm Employment Change statistics from the U.S and anticipate the U.S Feds monetary policy rhetoric later in March.
The month long bullish trend of the USD/CAD has been strong. However, some speculators may suspect that the upwards momentum may be running out of fuel, but before a strong selling reversal develops lower, impetus for the change in direction will need to occur. Until a change is delivered to financial houses which affect their behavioral sentiment, the USD/CAD may remain choppy moving forward.
Current Resistance: 1.36300
Current Support: 1.36050
High Target: 1.36610
Low Target: 1.35710
Ready to trade our daily Forex analysis? We’ve made a list of the best brokers to trade Forex worth using.