FXOpen
As the USD/CAD chart shows, the Canadian dollar has weakened against the US dollar over the week – today, the USD/CAD rate is near two-week highs.
According to Reuters, this has been influenced by:
→ the strengthening of the USD against other currencies;
→ the anticipation of retail sales data, which could affect the outlook for a potential rate cut by the Bank of Canada. The Retail Sales data will be released today at 15:30 GMT+3.
How might the Canadian dollar's exchange rate change against the “greenback”?
According to the technical analysis of the USD/CAD chart:
→ In 2024, the price action indicates the formation of a narrowing triangle with a median around the 1.368 level, which can be interpreted as a frequent compromise price between buyers and sellers.
→ On 11 July, an important event occurred – the price dropped below the 1.36 level, which is under the lower boundary of the triangle, but it sharply recovered – indicating bullish aggression and a false breakout of the multi-month low.
→ After this, the price began to rise towards the upper boundary of the triangle. In this process, the 1.3655 level changed its role from resistance to support (shown with arrows).
Thus, the dominance of bullish forces in the second half of July has brought the USD/CAD rate to the upper boundary of the triangle – it is possible that in light of today's news, the price may reach this boundary. In that case, one should be prepared for the key resistance to show its influence.
Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips (additional fees may apply). 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.
Latest articles
Gold Prices Recover After a Catastrophic Sell-Off
Yesterday, while analysing the silver price chart, we described a fundamental shift in supply and demand dynamics that likely became the key driver behind the sharp decline in prices.
This same reasoning can likely be applied to the gold market,
AUD/USD Rises Following RBA Decision
As the AUD/USD chart shows, the Australian dollar is holding above the psychological 0.700 level today after a bullish impulse triggered by the market’s reaction to the Reserve Bank of Australia’s (RBA) decision to raise the
Market Insights with Gary Thomson: Gold Outlook, Central Banks, US NFP Data, and Corporate Earnings
In this video, we’ll explore the key economic events and market trends, shaping the financial landscape. Get ready for insights into financial markets to help you navigate the week ahead. Let’s dive in!
In this episode of Market