USD/CAD Looks Set For Pullback As US GDP Looms

FXOpen

Market Sentiment: Bullish

Key Takeaways

·       The US dollar plunges against the Canadian counterpart

·       High volatility is expected amid US GDP reports

·       1.1278 remains crucial resistance

Technical analysis

As of this writing, the pair is being traded at 1.1094. On the upside, a hurdle can be seen near 1.1132, the high of the recent upside rally on the daily chart ahead of 1.1278, the high of March 2014.

uc fxopen

The bias will however remain bullish as far as the 1.0886 (swing low of the recent downside move on the daily chart) remains intact.

US Growth

The US Bureau of Economic Analysis is going to release the Gross Domestic Product (GDP) reports today in the New York session. According to the median projection of different economists, the US GDP remained 4.6% in the second quarter as compared to 4.2% in the same quarter of the year before. Similarly, the GDP remains 2.1% in the second quarter as compared to 1.3% in the quarter before, the forecast added. Generally speaking, higher GDP reading is considered positive for the economy thus better than expected actual readings will be seen as bullish for USD/CAD and vice versa.

Reuters/Michigan Consumer Sentiment

Today Reuters and University of Michigan are due to release the joint consumer sentiment report for the month of September. According to the average forecast of analysts, the consumer sentiment remained 84.7 points this month as compared to 82.5 points in the month before. The report is compiled on the basis of telephonic interviews and questionnaires every month, generally speaking higher consumer sentiment reading is considered positive for the economy thus a better than expected actual outcome will be seen as bullish for the pair.    

Trading Strategy

Keeping in view the overall technical and fundamental outlook, selling the pair around current levels can be a good strategy if the price leaves valid bearish reversal signs such as shooting star or bearish engulfing candle.

Trade global forex with the Innovative Broker of 2022*. Choose from 50+ forex markets 24/5. Open your FXOpen account now or learn more about trading forex with FXOpen.

* FXOpen International, Innovative Broker of 2022, according to the IAFT

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: Key Support Zone Resists Selling Pressure USD/JPY Analysis: Rate Reaches Maximum of the Year Market Analysis: EUR/USD, GBP/USD, and USD/JPY Market Analysis: AUD/USD and NZD/USD Could Start Fresh Increase Market Analysis: American Currency Rises Sharply after Fed Meeting

Latest articles

Weekly Market Wrap With Gary Thomson: UK STOCK MARKET RISES, S&P 500 FALLS, OIL ANALYSIS, EUR/GBP

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. UK stock market rises

Forex Analysis

EUR/USD Analysis: Key Support Zone Resists Selling Pressure

Today, fresh monthly values of the PMI index, which is considered a leading indicator of the state of the economy, have become known: France: actual 43.6, expected 46.2. This is the worst economic contraction since the coronavirus.Germany:

Forex Analysis

USD/JPY Analysis: Rate Reaches Maximum of the Year

This morning, the Bank of Japan's decision on the interest rate, which has been kept at -0.1% since 2016, became known. The rate size remained unchanged. Although surprises could occur due to the fact that inflation is still above

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.