USD/CAD Looks Positive Ahead of FOMC Minutes

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.

usdcad 

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.

Latest from Forex Analysis

Commodities and European currencies Test Key Supports 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

Latest articles

Weekly Market Wrap With Gary Thomson: NIKKEI-225, USD/JPY, GBP/USD, USD/CAD, Gold
Financial Market News

Weekly Market Wrap With Gary Thomson: NIKKEI-225, USD/JPY, GBP/USD, USD/CAD, Gold

Get the latest scoop on the week's hottest headlines, all in one convenient video. Join Gary Thomson, the COO of  FXOpen UK, as he breaks down the most significant news reports and shares his expert insights.

  • NIKKEI-225 Analysis Indicates Possibility

Forex Analysis

Commodities and European currencies Test Key Supports

On the eve of the Easter holidays, the main currency pairs have slightly slowed down the development of the main trends and are consolidating near key ranges, the breakdown of which could provoke a change in the vectors of medium-term

Shares

Stock Market Analysis: NVDA Losing Leadership?

Since the start of the week, the S&P-500 Index (US500) is up about 0.58% while NVDA's share price is down about 3.8%. This is a worrying sign for Nvidia stock investors — could it be a sign

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.