Baxia Markets
January 17, 2024

USDCAD Bulls Unleashed: Riding the Wave of Economic Data and Golden Cross Aspirations!

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In the realm of USDCAD, the past fortnight has witnessed a resolute surge, painting a robust bullish trend on the 4-hour chart. The crosshairs are set on the 1.3600 mark, as the pair orchestrates a dance toward this lofty goal.

Today, the stage is set for a potential crescendo as the US Core Retail Sales data takes the spotlight. Analysts anticipate a status quo at 0.2%, while Retail Sales are projected to rise to 0.4%, a modest increase from the previous 0.3%. Should these figures align with expectations, a formidable bullish wave may cascade over USDCAD, solidifying its bullish reversal.USDCAD Bulls Unleashed: Riding the Wave of Economic Data and Golden Cross Aspirations!

The EMA 50 is a harbinger of change, converging toward the EMA 200 with a golden cross on the horizon. The breach above the EMA 200 is akin to opening a gateway to a bullish realm, signaling a potential reversal in the winds of fortune.

As the price soars above the EMA 200, an intriguing pattern emerges – the size of the green candles expands, with a conspicuous absence of upper wicks. This phenomenon underscores the robust bullish appetite, suggesting an unyielding momentum propelling USDCAD toward higher echelons.

Venturing into the oscillator domain, both the MACD and RSI enthusiastically echo the bullish sentiment. The MACD signal line and its histogram hover confidently above the 0 line, mirroring the vigor of the bullish march. Simultaneously, the RSI, perched above the psychological 40% level, reaffirms the prevailing bullish trajectory.

In the grand tapestry of USDCAD, all signs point to a medium to long-term bullish trend. The convergence of the EMA lines, the steadfast breach above the EMA 200, and the unwavering bullish signals from the oscillators collectively paint a picture of optimism for traders navigating the currency pair.

As the day unfolds and the Retail Sales data is unveiled, the trajectory of USDCAD hangs in the balance. Will the economic data serve as a catalyst for an intensified bullish rally, or will unexpected revelations disrupt the upward momentum? Traders, poised at the edge of their seats, anticipate the revelation of the next chapter in the USDCAD saga.

In conclusion, the bullish overture of USDCAD remains a compelling narrative, intertwining technical indicators and economic data in a dance of market dynamics. The journey toward 1.3600 appears to be guided by a robust bullish wind, but as always in the unpredictable world of forex, vigilance is the watchword.


Key Economic Releases to Watch Today

USD,  Core Retail Sales (MoM) (Dec) 

Forecast 0.2% vs Previous 0.2%

USD, Retail Sales (MoM) (Dec)

Forecast 0.4% vs Previous 0.3%


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