USDCAD Surges Ahead of US consumer Confidence Figure


The greenback extended upward movement against its Canadian counterpart on Tuesday, taking the price of USD/CAD to more than 1.1645, ahead of US consumer confidence figure. There are no releases due from Canada until the next week. However, the recent decline in oil prices produced bearish impact in the Loonie.

The USD/CAD is going through Range trading after it hit the 5-year high at 1.1673 on December 15. It may enter the correction phase in coming days.

Technical Analysis

As of this writing, the pair is trading around 1.1644, only few pips above than the opening price that is 1.1634. The pair is struggling to break the immediate resistance at 1.1647. The pair did break this level during the early hours of Asian session, but the price is again pulled back. Success in breaking this level may allow the pair to move ahead to test the 5-year high at 1.1673 to print the fresh high for the current year.


On the downside, the pair is expected to find a support around 1.1600, the psychological number ahead of 1.1543, the 23.6% Fib level. The next support may be seen around 1.1397, the confluence of 50% fib level and 50-Day SMA ahead of 1.1332, the 61.8% Fib level, as demonstrated in the above chart.

The overall bias is bullish because of higher lows on the daily chart. The bias will remain bullish as far as the support area around 1.0809 is intact.

The US dollar is going bullish against the Canadian dollar after the recent positive data. The GDP of US in 3rd quarter came out at 5.0% exceeding the expectations of 4.3%. This strong data indicated the strengthening US economy and further supported the chances of FED raising the interest rates in 2015.

US Consumer Confidence

The US consumer confidence remained at 93.2 points this December, higher than that of 88.7 points in the month before. As an indicator of economic expansion, a high reading is considered bullish for the US dollar. Thus a better than expected figure may allow the USD/CAD to correct higher.

Trade Idea

As per the technical and fundamental analysis, it is better to stay at sidelines and wait for the pair to enter into correction phase. Going long may be preferred in short to medium term if the daily candle closes above 1.1673.

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, GBP/USD, and USD/JPY Analysis: Dollar on the Rise amid Good US Employment Data AUD/JPY Analysis: Rate Falls to Important Support EUR/USD, GBP/USD, USD/JPY Analysis: Dollar Stable Despite Weak Employment Data Will rate hikes end when 2023 ends? USD/JPY, USD/CAD, and EUR/USD Analysis: The US Dollar Corrected in Anticipation of PMI Data Release

Latest articles

Forex PAMM

Overview of FXOpen's Best-performing PAMM Accounts of November 2023

According to the results of November, we can single out the most promising PAMM providers for investment and monitoring for the future. First of all, one should consider accounts with good profitability and low drawdowns. In this PAMM-review on the

Forex Analysis

EUR/USD, GBP/USD, and USD/JPY Analysis: Dollar on the Rise amid Good US Employment Data

The US Federal Reserve will publish its interest rate decision on Wednesday, December 13th. The American regulator is not expected to take steps towards tightening or easing monetary policy, given the strong November labour market report published last Friday. Thus,


Crude Oil Ends Freefall, but Is It Back in the Black?

In the early stretch of December, the WTI Crude Oil market experienced a sudden and substantial downturn, sending shockwaves through the financial landscape. From a robust $77.71 per barrel on November 29, the value plunged to just over $69.

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.