USDCAD has continued its upward trajectory, marking its third consecutive day of gains and reaching a fresh year-to-date peak. The currency pair climbed to the 1.3815 region during the Asian session, supported by a combination of factors including reduced Fed rate cut expectations and geopolitical tensions.
Reduced expectations of Fed rate cuts have bolstered the US Dollar (USD), attracting buyers to USDCAD. Additionally, geopolitical risks have also contributed to the USD's strength, lending further support to the currency pair.
Despite the bullish momentum for USDCAD, an uptick in oil prices has provided support to the Canadian Dollar (CAD), acting as a counterbalance and limiting further gains for the currency pair.
On the hourly timeframe chart, the bullish momentum for USDCAD is evident with the widening distance between the EMA 50 and EMA 200. Both oscillator indicators, MACD and RSI, support this bullish sentiment. The MACD signal line is above the zero level, while the RSI remains above the 60% level, indicating strong bullish momentum.
Key support for USDCAD is located at CAD$1.3490, the lower boundary of the value area plotted by the volume profile indicator. On the upside, resistance levels to watch are between CAD$1.3850 and CAD$1.4000.
The overall trend for USDCAD remains bullish, supported by strong USD sentiment and technical indicators. However, mixed results from today's USD economic releases could challenge this bullish outlook, despite the positive CPI forecast for Canada.
Traders should monitor the key support and resistance levels, as well as the impact of today's economic data releases on USDCAD. With both bullish and bearish factors at play, staying informed and adaptable will be crucial for navigating the USDCAD market effectively in the coming days.
Forecast 1.514M vs Previous 1.524M
Forecast 1.480M vs Previous 1.521M
Forecast 0.7% vs Previous 0.3%
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