Baxia Markets
April 01, 2024

USDCAD Hits One-Week Low Amid Economic Data Surge

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Amidst a flurry of economic data releases, the USDCAD pair finds itself under persistent selling pressure, dropping to over a one-week low on Monday. The currency pair's decline extends from the 1.3610-1.3615 supply zone, representing the year-to-date peak. Despite the downward trend, the descent halts just shy of the psychological support level at 1.3500, prompting a modest recovery from the session's low.

Today's economic calendar features key releases for the US, including the S&P Global Manufacturing Index and the ISM Manufacturing Purchasing Managers' Index (PMI). Forecasts for these indicators stand at 52.5 and 48.5, respectively, maintaining a level of consistency with previous readings.

USD/CAD Hits One-Week Low Amid Economic Data Surge

Last week's trading session concluded with a notable development as the USDCAD pair exhibited a death cross on the Exponential Moving Averages (EMAs) 50 and 200. This technical pattern typically signals a further downward trajectory. Additionally, prices breached below the value area of the volume profile, underlining a prevailing bearish sentiment in the market.

Both the Moving Average Convergence Divergence (MACD) and the Relative Strength Index (RSI) corroborate the bearish outlook. The MACD's signal line remains below the zero line, while the RSI comfortably resides below the 40% range. These oscillators further underscore the prevailing negative sentiment surrounding the USD/CAD pair.

In light of these developments, traders remain cautious as they monitor the unfolding economic data and technical indicators for potential shifts in market sentiment and direction.


Key Takeaways:

  1. USD/CAD drops to one-week low, under continuous selling pressure.
  2. Economic calendar packed with crucial data releases for the US.
  3. Death cross observed on USD/CAD EMA 50 and 200, signaling further downside.
  4. Prices breach value area, confirming bearish sentiment.
  5. MACD and RSI indicators align with bearish outlook, adding to downward pressure.


Key Economic Releases to Watch Today

USD, S&P Global Manufacturing

Forecast 52.5 vs Previous 52.5

USD,  ISM Manufacturing PMI

Forecast 48.5 vs Previous 47.8



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