USDCAD Analysis
| Performance after Tuesday | |||||
| Period | Pct | Chg | Momentum | ||
| Tuesday | -0.11% | -15.4 Pips |  |
||
| Week to-date | 0.13% | 18.5 Pips |  |
||
| October | 2.15% | 290.9 Pips | |
||
Upcoming key events (London Time)
Wed 02:45 PM CAD Bank of Canada Policy Interest Rate
What happened lately
On Tuesday, the USDCAD exchange rate experienced a slight decline of 0.11%, settling at 1.38181. This minor depreciation in the US dollar against the Canadian dollar comes at a time when there are no major economic news announcements to influence market sentiments. The subtle movement could be attributed to regular market fluctuations rather than any significant economic developments or shifts in investor behavior. Without major economic data releases or political news, currency fluctuations often reflect technical market activities or adjustments made by traders in anticipation of future events.
An important upcoming event that traders and market analysts will be focusing on is the Bank of Canada’s policy interest rate announcement scheduled for Wednesday at 2:45 PM. As indicated by the high-impact tag, this announcement has the potential to significantly influence the Canadian dollar. Typically, changes in interest rates by central banks can lead to volatility in the foreign exchange markets. If the Bank of Canada decides on a rate hike, it could strengthen the Canadian dollar, making it more attractive to investors who are seeking higher yields. Conversely, if rates are held steady or cut, it could lead to a depreciation of the Canadian dollar as investors may look for opportunities elsewhere.
The influence of this anticipated announcement by the Bank of Canada on the USDCAD currency pair will largely depend on the decision made. Should the Bank of Canada enact a policy change, this could enhance the market’s perception of the Canadian dollar’s strength or weakness relative to the US dollar. In the event of a rate hike, the USDCAD might see further declines as traders and investors react to a strengthening Canadian dollar. On the other hand, if there are no changes or if rates are lowered, the USDCAD could potentially see an uptick, reflecting a stronger US dollar position against a weaker Canadian dollar. Therefore, the forthcoming decision by the Bank of Canada holds significant weight in determining the direction and volatility of the USDCAD exchange rate in the immediate future.
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What can we expect from USDCAD today?
USDCAD on Tuesday dropped -0.11% to 1.38181. Price is above 9-Day EMA while Stochastic is rising.
Updated daily direction for USDCAD looks bearish as the pair posted lower in Tuesday trading session.
Looking ahead for the day, immediate support level is at S1 1.38061 with break below could see further selling pressure towards S2 at 1.37942. To the upside, with the current momentum bearish, we prefer to look at breakout of the recent daily high of 1.38378 as a potential indicator of buying interest. Failure to break the resistance level would continue to echo bearish sentiment. A close below 1.38100 would indicate selling pressure.
For the week to-date, take note that USDCAD is mixed as compared to the prior week.
Key levels to watch out:
| R3 | 1.38617 |
| R2 | 1.38498 |
| R1 | 1.38339 |
| Daily Pivot | 1.3822 |
| S1 | 1.38061 |
| S2 | 1.37942 |
| S3 | 1.37783 |
#USDCAD Trending on Twitter
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