USDCAD Analysis
| Performance after Monday | |||||
| Period | Pct | Chg | Momentum | ||
| Monday | 0.15% | 20.5 Pips |  |
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| Week to-date | 2.16% | 291.3 Pips | |
||
| October | 2.02% | 272.9 Pips |  |
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Upcoming key events (London Time)
Tue 01:30 PM CAD CPI Inflation Rate (12-mth)
What happened lately
On Monday, the USDCAD currency pair experienced a slight increase of 0.15%, closing at 1.38001. This movement occurred despite the absence of significant economic news, suggesting that traders and investors might be reacting to other underlying market forces such as sentiment shifts or adjustments in risk appetite. The market’s attention is now turning towards the upcoming Canadian Consumer Price Index (CPI) Inflation Rate data, which is scheduled to be released at 1:30 PM on Tuesday. This high-impact event, as highlighted by Economic Recap, is anticipated to shed light on the inflationary trends in Canada over the past 12 months. The outcome of this report will be pivotal in shaping expectations about the Bank of Canada’s monetary policy direction, particularly in terms of interest rate adjustments.
The upcoming Canadian CPI data is crucial and will likely influence the USDCAD exchange rate significantly. If the inflation rate surpasses expectations, it might trigger speculation about potential interest rate hikes by the Bank of Canada, thus providing upward pressure on the Canadian dollar and potentially causing the USDCAD to decline. Conversely, if the inflation rate falls below market expectations, it could indicate less urgency for tightening monetary policy, possibly weakening the Canadian dollar and driving the USDCAD pair upward. Therefore, traders and investors will be closely watching these numbers to adjust their positions accordingly, making Tuesday a potentially volatile and decisive day for the USDCAD market movement.
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What can we expect from USDCAD today?
USDCAD on Monday rose 0.15% to 1.38001. Price is above 9-Day EMA while Stochastic is rising in overbought zone.
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 1.38146 with break above could target R2 at 1.38291 or figure level area. While towards the downside, we are looking at daily low of 1.37670 as an important support. Break below this level could weaken the current bullish momentum. A break above 1.38053 may suggest continuation after recent positive movement.
For the week to-date, take note that USDCAD is bullish as the pair continued to trade higher and is up by 2.16% over the past few days.
Key levels to watch out:
| R3 | 1.38529 |
| R2 | 1.38291 |
| R1 | 1.38146 |
| Daily Pivot | 1.37908 |
| S1 | 1.37763 |
| S2 | 1.37525 |
| S3 | 1.3738 |
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