Amidst the CAD economic forecast showing Wholesale Sales expected to decrease by 0.6% and Foreign Securities Purchase to fall to 2.05B from 10.44B, potential economic challenges loom, particularly in the wholesale sector, impacting capital inflows and potentially influencing monetary policy decisions.
Today's USDCAD price action reflects bullish momentum as the USD experienced a short while rally, appreciating against the CAD by over 80 pips. This rally, driven by mixed US economic data, saw the pair breaking above the upper Bollinger band, signaling bullish volatility. Additionally, a golden cross formation between the EMA 50 and 200 suggests a bullish long-term trend.
Trading above the value area of the volume profile, with the high at 1.3516 and low at 1.3470, as long as prices remain above the value area's low, the trend remains bullish. Despite the bullish sentiment, caution is warranted as both the RSI and MACD indicators signal bullishness, with RSI reaching overbought levels. The MACD's signal line trading above the 0 line supports the bullish sentiment, although the histogram below the signal line suggests a potential pullback.
1. CAD's economic forecast signals challenges, with Wholesale Sales expected to decrease by 0.6% and Foreign Securities Purchase to fall to 2.05B.
2. Today's USDCAD price action reflects bullish momentum, driven by mixed US economic data, particularly in core retail sales, retail sales, PPI, and initial jobless claims.
3. A golden cross formation between the EMA 50 and 200 suggests a bullish long-term trend for USDCAD.
4. Trading above the value area of the volume profile indicates a bullish trend, with caution advised as RSI reaches overbought levels and the MACD suggests a potential pullback.
5. The outlook for USDCAD remains bullish, pending the release of CAD economic data, which could impact USD strength.
Forecast 2.05B vs Previous 10.44H
Forecast -0.6% vs Previous 0.3%
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