USDCAD Holds Range Ahead of US Monetary Policy Announcement

FXOpen

The US Dollar (USD) fell moderately against the Canadian Dollar (CAD) on Wednesday, dragging the price of USDCAD to less than 1.2300 ahead of the US Monetary Policy announcement which is expected to incite high volatality accorss the financial markets. The technical bias however still remains bearish due to a Lower Low and Lower High in the recent wave on daily chart.

Technical Analysis

As of this writing, the pair is being traded around 1.2295. A hurdle may be noted near 1.2300, the confluence of pychological number as well as intraday high of yesterday ahead of 1.2315, a major horizontal support turned resistance and then 1.2345, the high of the last major upside rally.

USDCAD Holds Range Ahead of US Monetary Policy Announcement

On the downside, the pair is likley to find a support around 1.2280, the low of the recent downside move ahead of 1.2000, the confluence of pychological number as well as low of the last major dip as demonstrated in the above daily chart. The technical bias will however remain bearish as long as the 1.2345 resistance area is intact.

US Monetary Policy Announcement

On Forex Calendar, the Federal Reserve is due to announce its monetary policy today. According to the average forecast of different economists, the US Central Bank is expected to keep its benchmark interest rate unchanged at 0.25%. The event will include the release of Monetary Policy Statement as well as press conference by the Fed Chief Jannet Yellen. Investors will be eying Yellen’s remarks very closely to gauge the future monetary policy outlook of the Worlds’ largest economy. A hawkish stance by the Fed boss may incite huge bullish momentum in the US Dollar Index.

Trade Idea

Considering the overall technical and fundamental outlook, selling the pair around current levels appears to be a good strategy in short to medium term if we get a bearish pin bar or bearish engiulfing candle on daily chart.

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

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
Financial Market News
Forex Market Insights

AUD/USD Consolidates Gains While NZD/USD Dips

AUD/USD is consolidating gains near the 0.6420 zone. NZD/USD is trimming gains and struggling to stay above the 0.5945 pivot zone.

Important Takeaways for AUD/USD and NZD/USD Analysis Today

· The Aussie Dollar started a

An Important Bullish Pattern Forms on the NIO Share Price Chart
Shares

An Important Bullish Pattern Forms on the NIO Share Price Chart

Today, the share price of NIO Inc. (NIO), a Chinese manufacturer of "smart" electric vehicles, is trading above $4 – a development that may be viewed as an optimistic scenario following the drop to $3 in the first half of April,

S&P 500 Chart Analysis Ahead of the Busiest Week of Earnings Season
Indices

S&P 500 Chart Analysis Ahead of the Busiest Week of Earnings Season

Despite the fact that President Trump’s earlier decision to impose tariffs (at higher rates than expected) shook the stock markets, the S&P 500 index (US SPX 500 mini on FXOpen) could still end April without significant losses

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.