USD/CAD Looks Poised for Upside Rally After Yellen’s Speach

FXOpen

The US Dollar (USD) extended upside movement against the Canadian Dollar (CAD) on Friday, increasing the price of USDCAD to more than 1.3100 following the release of some key economic news and events. The technical bias remains bearish because of a lower low in the recent wave.

Technical analysis:

As of this writing the pair is being traded around 1.3146. A support can be seen around 1.3110-1.3100, the confluence of horizontal support area as well as psychological number. A break and daily closing below 1.3100 shall incite renewed selling pressure, validating a move towards the 1.2980 support area which is another critical support as demonstrated in the give below daily chart.

USD/CAD Looks Poised for Upside Rally After Yellen’s Speach

On the upside, the pair is expected to face a hurdle around 1.3309, the horizontal resistance area ahead of 1.3400 the psychological number and then 1.3598, the swing high of the last major upside rally. The technical bias shall remain bullish as long as the 1.3080 support area is intact.

Fed Yellen Speach

Federal Reserve Chair Janet Yellen did not comment on the outlook for the U.S. economy or monetary policy in remarks to teachers, saying improving U.S. education could help raise living standards.

“Improving education is at the top of my list,” Yellen said in prepared remarks at a town hall meeting with educators, referring to the types of policies and initiatives that might spur economic growth and make Americans better off.

Trade Idea:

Considering the overall the technical and fundamental outlook buying the pair around current levels appears to be a good strategy in short to medium term.

 

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.

Latest from Forex Analysis

EUR/USD Analysis: The Price Today Has Set Its Minimum Since the Beginning of March Market Analysis: GBP/USD Dives While USD/CAD Gains Bullish Pace The US Currency Corrects After Recent Growth USD/JPY Price Analysis: Consolidation ahead of US News GBP/USD Price Falls to 1.26 after Bank of England Decision

Latest articles

Forex Analysis

EUR/USD Analysis: The Price Today Has Set Its Minimum Since the Beginning of March

As the EUR/USD chart shows at the start of the European session today, the exchange rate has dropped below EUR 1.08 per US dollar.

Tuesday's news contributed to this. According to Nasdaq.com, on March 26, 2024, The

What Is a Megaphone Pattern and How Can You Trade It?
Trader’s Tools

What Is a Megaphone Pattern and How Can You Trade It?

Chart patterns have been used to analyse financial markets for a long time. One popular formation in forex and other markets is the Megaphone. In this text by FXOpen, we'll explain what the setup is and how to trade using

Indices

NIKKEI-225 Analysis Indicates Possibility of Correction from Historically High Levels

On March 21, the value of the Japanese stock index reached a historical maximum, exceeding the level of 41,100 points. This was facilitated by:

→ Weak yen supporting exporters. It increases the value of profits earned abroad for a large

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. 65.68% 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.