USDCAD Analysis
| Performance after Wednesday | |||||
| Period | Pct | Chg | Momentum | ||
| Wednesday | 0.43% | 57.7 Pips |  |
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| Week to-date | -0.59% | -79.7 Pips |  |
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| September | -0.04% | -5.1 Pips |  |
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Upcoming key events (London Time)
Thu 01:30 PM USD GDP annual rate Thu 02:20 PM USD Federal Reserve Chair Jerome Powell speech Fri 01:30 PM USD PCE Price Index, excluding food and energy (12-mth)
What happened lately
In the United States, the economic data for the real estate market showed a mixed picture for the month of August. U.S. new-home sales experienced a significant downturn, decreasing by 4.7%, contrasting with the substantial 10.6% increase observed in July. This change indicates a cooling in the housing market, which could be attributed to various factors including potential rises in mortgage rates or economic uncertainty. On the other hand, the Federal Housing Finance Agency (FHFA) reported that the U.S. House Price Index for July saw a modest rise of 0.1%, improving from the -0.1% decrease noted in June. This slight improvement in house prices suggests some resilience in housing values despite the decline in new-home sales.
Considering the impact on the USDCAD exchange rate, which rose by 0.43% to 1.34845 on Wednesday, the mixed housing data from the U.S. contributes to an uncertain economic outlook. The dip in new-home sales could signal to investors a potential slowdown in economic activity, which might affect the strength of the U.S. dollar. Meanwhile, the slight increase in the House Price Index could mitigate some adverse sentiments by indicating that housing values are managing to hold steady. Upcoming events such as the release of the U.S. GDP annual rate, a speech by Federal Reserve Chair Jerome Powell, and the PCE Price Index (excluding food and energy) later this week, will further influence investor sentiment and could lead to greater volatility in the USDCAD pair. Depending on the outcomes and tones of these events, there might be additional directional movements in the exchange rate.
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What can we expect from USDCAD today?
USDCAD on Wednesday rose 0.43% to 1.34845. Price is below 9-Day EMA while Stochastic is falling.
Updated daily direction for USDCAD looks bullish as the pair ended higher after Wednesday trading session.
Looking ahead for the day, immediate upside resistance level is R1 at 1.3509 with break above could target R2 at 1.35335 or figure level area. While towards the downside, we are looking at daily low of 1.34160 as an important support. Break below this level could weaken the current bullish momentum. A break above 1.34870 may suggest continuation after recent positive movement.
For the week to-date, take note that USDCAD is bearish as the pair posted lower by -0.59%.
Key levels to watch out:
| R3 | 1.358 |
| R2 | 1.35335 |
| R1 | 1.3509 |
| Daily Pivot | 1.34625 |
| S1 | 1.3438 |
| S2 | 1.33915 |
| S3 | 1.3367 |
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