USDCAD Analysis
| Performance after Monday | |||||
| Period | Pct | Chg | Momentum | ||
| Monday | 0.06% | 8.5 Pips |  |
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| Week to-date | 0.08% | 11.3 Pips |  |
||
| September | 0.26% | 35.3 Pips | |
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Upcoming key events (London Time)
No major events for the day.
What happened lately
In the United States, the Chicago Purchasing Managers’ Index (PMI) for September increased slightly to 46.6 points, up from 46.1 points in August. This improvement suggests a modest recovery in the business sentiment among purchasing managers in the Chicago area. However, since the figure remains below the 50-point threshold, it still indicates a contractionary phase in the manufacturing sector. A PMI below 50 points typically reflects a shrinking manufacturing economy, which could be a cause for cautious optimism rather than robust confidence.
In the context of the USDCAD exchange rate, the minimal improvement in the Chicago PMI may not have a significant impact on the currency pair. On Monday, the USDCAD rose by 0.06% to 1.35234. For the month of September, the exchange rate increased by 0.26%, or 35.3 basis points. The lack of major economic events for the day suggests that the exchange rate movement will likely be influenced by other factors such as general market sentiment, oil prices, and global economic conditions. An underwhelming PMI reading, while slightly better, does not signify strong economic growth, which could limit the USD’s appreciation against the CAD in the near term.
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What can we expect from USDCAD today?
USDCAD on Monday rose 0.06% to 1.35234. Price is above 9-Day EMA while Stochastic is rising.
Updated daily direction for USDCAD looks bullish as the pair ended higher after Monday trading session.
Looking ahead for the day, immediate upside resistance level is R1 at 1.35457 with break above could target R2 at 1.35681 or figure level area. While towards the downside, we are looking at daily low of 1.34850 as an important support. Break below this level could weaken the current bullish momentum. A break above 1.35377 may suggest continuation after recent positive movement.
For the week to-date, take note that USDCAD is mixed as compared to the prior week.
USDCAD ended month of September trading session up by 0.26% or 35.3 pips higher.
Key levels to watch out:
| R3 | 1.35984 |
| R2 | 1.35681 |
| R1 | 1.35457 |
| Daily Pivot | 1.35154 |
| S1 | 1.3493 |
| S2 | 1.34627 |
| S3 | 1.34403 |
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