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 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

Shares

How Earnings Reporting Could Impact Netflix (NFLX) Share Price

Earnings season is gaining momentum. Today, after the close of the main trading session, Netflix (NFLX) is set to release its quarterly financial results.

Analysts are optimistic, forecasting earnings per share (EPS) of $7.08, up from $4.88 a

Commodities

XAU/USD Chart Analysis: Volatility at a Yearly Low

The daily chart of XAU/USD shows that the Average Directional Index (ADX) has reached its lowest level since the beginning of 2025, indicating a significant decline in gold price volatility.

Yesterday’s release of the US Producer Price Index

Forex Analysis

Pause in Dollar Rally: Weak Data and Powell Dismissal Rumours

Amid rising market volatility, the US dollar is losing ground: USD/JPY is correcting after a recent bullish impulse, while USD/CAD is retreating from the upper boundary of its medium-term sideways range. This corrective movement was triggered by disappointing

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.