USDCAD Technical Analysis - Time for a pullback?
USDThe Fed left interest rates unchanged as expected at the last meeting and dropped the tightening bias in the statement.The US PCE came in line with expectations.The US ADP and the US Job Openings missed expectations, followed by weaker than expected US Jobless Claims.The latest US ISM Manufacturing PMI missed expectations by a big margin remaining in contraction with the US ISM Services PMI following suit but holding on in expansion. The US Consumer Confidence missed expectations across the board.The market expects the first rate cut in June. CADThe BoC left interest rates unchanged at 5.00% as expected stating that further easing in underlying inflation is needed.The latest Canadian CPI missed expectations across the board with the underlying inflation measures falling.On the labour market side, the latest report beat expectations but we saw a contraction in full-time employment and a fall in wage growth. The Canadian PMIs improved in January although they remain both in contractionary territory. The market expects the first rate cut in June.USDCAD Technical Analysis – Daily TimeframeOn the daily chart, we can see that USDCAD broke below the key trendline and triggered a strong selloff as the sellers piled in to position for a drop into the 1.3360 level. That’s also where we should find the buyers stepping in to position for a rally back to the highs with a better risk to reward setup. USDCAD Technical Analysis – 4 hour TimeframeOn the 4 hour chart, we can see that we have a clear swing level around at the 1.3442 level where we might see a bounce with the buyers stepping in with a defined risk below the level to position for a rally back to the highs. The sellers, on the other hand, might want to wait for the price to pull back into the 38.2% Fibonacci retracement level to position for new lows with a better risk to reward setup. USDCAD Technical Analysis – 1 hour TimeframeOn the 1 hour chart, we can see that the latest leg lower diverged with the MACD which is generally a sign of weakening momentum often followed by pullbacks or reversals. In this case, it might be a signal for a pullback into the resistance around the 1.35 handle. Upcoming EventsToday we conclude the week with the US NFP and the Canadian Jobs data. This article was written by FL Contributors at www.forexlive.com.
USD
- The Fed left interest rates unchanged as expected at the last meeting and dropped the tightening bias in the statement.
- The US PCE came in line with expectations.
- The US ADP and the US Job Openings missed expectations, followed by weaker than expected US Jobless Claims.
- The latest US ISM Manufacturing PMI missed expectations by a big margin remaining in contraction with the US ISM Services PMI following suit but holding on in expansion.
- The US Consumer Confidence missed expectations across the board.
- The market expects the first rate cut in June.
CAD
- The BoC left interest rates unchanged at 5.00% as expected stating that further easing in underlying inflation is needed.
- The latest Canadian CPI missed expectations across the board with the underlying inflation measures falling.
- On the labour market side, the latest report beat expectations but we saw a contraction in full-time employment and a fall in wage growth.
- The Canadian PMIs improved in January although they remain both in contractionary territory.
- The market expects the first rate cut in June.
USDCAD Technical Analysis – Daily Timeframe
On the daily chart, we can see that USDCAD broke below the key trendline and triggered a strong selloff as the sellers piled in to position for a drop into the 1.3360 level. That’s also where we should find the buyers stepping in to position for a rally back to the highs with a better risk to reward setup.
USDCAD Technical Analysis – 4 hour Timeframe
On the 4 hour chart, we can see that we have a clear swing level around at the 1.3442 level where we might see a bounce with the buyers stepping in with a defined risk below the level to position for a rally back to the highs. The sellers, on the other hand, might want to wait for the price to pull back into the 38.2% Fibonacci retracement level to position for new lows with a better risk to reward setup.
USDCAD Technical Analysis – 1 hour Timeframe
On the 1 hour chart, we can see that the latest leg lower diverged with the MACD which is generally a sign of weakening momentum often followed by pullbacks or reversals. In this case, it might be a signal for a pullback into the resistance around the 1.35 handle.
Upcoming Events
Today we conclude the week with the US NFP and the Canadian Jobs data. This article was written by FL Contributors at www.forexlive.com.
