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The USD/CAD is currently trading near short-term highs, after bouncing from lows produced yesterday in what can be described as a cautious Forex market.
As of this writing the USD/CAD is near the 1.32550 ratio, after touching a low around the 1.31520 mark yesterday. Intriguingly, yesterday’s lows in the USD/CAD fell below prices seen on Thursday of last week. The low for last week in the USD/CAD actually took place on Tuesday the 25th when the currency pair hit a level slightly below 1.32000. The USD/CAD remains within the lower boundaries of its mid-term price range, but it did hit depths around the 1.30940 ratio on the 14th of July.
U.S GDP numbers last Thursday came in stronger than anticipated, and this was followed by Canada’s Gross Domestic Product results on Friday which met expectations with a rather lackluster result. The U.S Federal Reserve raised its Federal Funds Rate last week, but this had been widely anticipated by USD/CAD traders and there was not a great deal of volatility. Today the U.S and Canada will release Manufacturing PMI reports.
The range of the USD/CAD may prove to be a speculative playground for traders who have strong perceptions via technical charts. The lower end of the mid-term price realms for the currency pair may prove tempting for traders if movements higher run into what appears to be durable resistance. The level of 1.32600 should be watched by short and near-term speculators to see if price action can be sustained below this level.
- Trading within the USD/CAD has almost been polite. Speculators who want to pursue the currency pair however are urged to use conservative leverage and focus on quick-hitting outcomes.
- This Friday the U.S. will release its Non-Farm Employment Change and Average Hourly Earnings numbers. If wages come in with lower-than-expected inflation results it could trigger additional USD/CAD selling.
Crude Oil and gold prices have been rather strong lately and this may help the perception the USD/CAD could trend lower. Current support near the 1.32400 to 1.32300 levels should be watched. Traders should not be overly ambitious regarding their targets. The lower end of durable support may prove to be the 1.31950 level in the near term. The USD/CAD seems to have found a comfortable equilibrium the past week of trading and it may take a surprise data result from the U.S. to trigger faster price velocity. Traders should remain cautious and the potential to find opportunities in what has been a relatively calm value range may be attractive for wagers.
Current Resistance: 1.32610
Current Support: 1.32450
High Target: 1.32720
Low Target: 1.31960
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