News & Analysis / Analysis / Market Analysis: The USD/CAD Rate Drops to Its Minimum of 2 Months

Market Analysis: The USD/CAD Rate Drops to Its Minimum of 2 Months

FXOpen

This morning, 1 USD was selling for less than 1.354 Canadian dollars – for the first time since October 1st.

The strengthening of the Canadian dollar and the weakening of the USD was facilitated by the news published yesterday:
→ Canada's real gross domestic product (GDP) grew by 0.1% in September, which exceeded analysts' expectations and reduced the relevance of the recession scenario in Canada.
→ The number of applications for unemployment benefits in the US for the week amounted to 218k (a week earlier it was 211k), which may indicate a cooling of the US economy.
→ The price index for personal consumption expenditures (PCE) fell to 3% from the previous value of 3.4%. While 3% remains too high to declare victory over inflation, it marks a new series low that is sure to reduce the likelihood of a Fed rate hike.

In our previous analysis of the USD/CAD market, we wrote that the price could form a rebound from support in the area of 1.36625. However, the rebound to point E was very weak, and after the breakdown, the level 1.36625 showed resistance properties.

At the same time, the situation on the chart looks bearish:
→ price dynamics formed decreasing lows A-B-C-D;
→ the bullish trend line (shown in black) is broken;
→ price dynamics form new lows and a downward channel (shown in red).

If we assume that the market will recover from oversold conditions (the RSI indicator is close to going below the 0.3 level), the USD/CAD rate in this case may find resistance from the median line of the channel and the level of 1.36625.

Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Stay ahead of the market!

Subscribe now to our mailing list and receive the latest market news and insights delivered directly to your inbox.

forex

Instrument
Live ECN bid
Live ECN ask
Action
EURUSD
1.03830
1.03835
Trade
GBPUSD
1.24415
1.24423
Trade
AUDUSD
0.62783
0.62788
Trade
USDJPY
154.427
154.437
Trade
USDCAD
1.43022
1.43027
Trade
More
Forex Trading with FXOpen

Forex Trading with FXOpen

Experience ECN technology for deep liquidity and light-speed trade execution

  • Access over 50 markets
  • Trade with spreads from 0.0 pips
  • Take advantage of commissions from $1.50/lot
Learn more

Latest articles

Forex Analysis

USD/JPY Exchange Rate Recovers from Yearly Low

As shown on the USD/JPY chart, today the exchange rate aggressively surged above the 153 yen per US dollar level. This marks a strong recovery from the yearly low of around 151 yen per dollar, set last week.

Today's

Shares

Coca-Cola (KO) Stock Surges Nearly 5% in a Day

Yesterday, shares of The Coca-Cola Company (KO) saw a significant rally, climbing nearly 5% and reaching a yearly high above $67. The last time KO stock traded at this level was in late October 2024. Investor optimism was fueled by

Forex Analysis

Market Focus: Key Inflation Data and Fed Policy Signals

The January employment report, published last Friday, was met with a lukewarm reaction from market participants. The number of new jobs in the US for January fell short of expectations (143K vs 169K). On the positive side, the unemployment rate

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.