FXOpen
The US Dollar (USD) extended upside movement against the Canadian Dollar (CAD) on Tuesday, increasing the price of USD/CAD to more 1.0670. The sentiment however remains bearish due to Lower Low and Lower High in the recent wave.
Technical Analysis
As of this writing, the pair is being traded near 1.0673. A support can be noted around 1.0631, the intraday low of yesterday ahead of 1.0620, the swing low of the recent correction wave as demonstrated in the following chart. A break and daily closing below the 1.0620 support area could spur a deeper correction, opening doors for a dip below the 1.0600 handle in the long run.
On the upside, the pair is likely to face a hurdle near 1.0728, the 50% fib level ahead of 1.0856, the 38.2% fib level and then 1.0960, the swing high of the recent upside rally. The sentiment will remain bearish as far as the 1.0960 resistance area is intact.
FOMC Minutes
Tomorrow i.e. on Wednesday the Federal Reserve is scheduled to release the minutes from the recent monetary policy meeting. The comments from the Federal Open Market Committee (FOMC) policymakers regarding the first rate hike could incite high volatility in the price of USD/CAD. A surprise increase in the nonfarm payrolls and unexpected fall in the unemployment rate has already fueled speculations that the central bank could revise its forward guidance stance and consider earlier than expected increase in the benchmark interest rate.
Trade Ideas
Considering the overall technical and fundamental outlook, buying the pair around the current levels could be a good strategy, the trade must however be stopped out on a daily closing below the 1.0620-1.0600 support area as described above. It is always suggested to use proper risk and reward ratio in forex trading.
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
Gold Price Plunges After Climbing to $3,500 for the First Time
As the XAU/USD chart shows:
→ Yesterday, the spot gold price stopped just a few cents short of the key psychological level of $3,500 (and even exceeded it on the futures market);
→ But this morning, an ounce is trading
Alphabet (GOOGL) Shares Hover Near Psychological Level Ahead of Earnings Report
On 31 March, we noted that bearish sentiment could push Alphabet’s (GOOGL) share price towards the psychological level of $150. As the current price chart suggests, GOOGL is now trading close to that very level.
Moreover, the price is
Four 1-Minute Strategies for Scalpers
Scalping is all about speed, precision, and quick decision-making. For traders who thrive in fast-paced environments, 1-minute strategies offer a way to engage with the market. But with such a short timeframe, trading requires a clear plan and sharp execution.