USD/CAD Rate Reaches Significant Support Level

FXOpen

On June 12, we wrote about bearish signs observed on the USD/CAD chart, pointing to the prospect of USD weakening.

Since then, the USD/CAD rate has decreased by approximately 0.75% and has reached an important support level, specifically the lower boundary of the descending triangle (with the median around 1.36700), which indicates a long-term balance of supply and demand among market participants.

The fact that today the USD/CAD rate is rising from yesterday's minimum on June 4 at the level of 1.36408 confirms the importance of the support formed by the lower boundary of the triangle.

According to today's technical analysis of the USD/CAD chart:
→ the price in the second half of June is moving within a downtrend (shown by the red channel);
→ the price has dropped into the lower half of the red channel, indicating bearish preference;
→ bulls attempted to push the price upward in mid-June, breaking through the upper boundary of the triangle, but failed – a bearish sign.

Could the lower boundary be breached? Certainly, if there are fundamental drivers for it.

Such drivers could be the Canadian inflation news – they are set to be released today at 15:30 GMT+3.

According to ForexFactory, it is expected that the CPI index will decrease on a monthly basis and will be 0.3% (compared to 0.5% a month ago).

Be prepared for volatility spikes tonight.

Read analytical USD/CAD price forecasts for 2024 and beyond.

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.

Latest articles

Tesla Report May Strengthen Bullish Sentiment
Shares

Tesla Report May Strengthen Bullish Sentiment

President Joe Biden withdrew his bid for a second term in the White House on Sunday. It's reasonable to assume that the stock market responded optimistically to this news, as US stocks closed higher on Monday, with the S&

Commodities

Analysis of XAU/USD: Gold Price Falls for 4 Consecutive Days

As shown on the XAU/USD chart, Monday, 22 July marked the fourth consecutive day of declining gold prices. The change from the historical peak reached on Wednesday is around -3.5%.

Bearish sentiment is driven by:

→ Market participants' assessment

EUR and GBP Retreat from Key Levels
Forex Analysis

EUR and GBP Retreat from Key Levels

Financial and currency markets are experiencing one shock after another. The steady decline in US inflation, a potential Fed rate cut, and the current US president’s exit from the election race have led to sharp fluctuations in almost all

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.