USDCAD Analysis
| Performance after Monday | |||||
| Period | Pct | Chg | Momentum | ||
| Monday | 0.06% | 8.2 Pips |  |
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| Week to-date | 0.06% | 7.7 Pips | |
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| November | -0.14% | -19 Pips |  |
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Upcoming key events (London Time)
Tue 12:00 AM USD Presidential Election
What happened lately
In the United States, the Census Bureau reported that new orders for manufactured goods improved slightly in September, recording a change of -0.5% compared to a revised -0.8% in August. This marginal recovery indicates a modestly improving manufacturing sector, potentially mitigating fears of a prolonged downturn in industrial production. The improvement, although negative, suggests a slower pace of decline, which might hint at resilience in the manufacturing sector or adjustments in inventory management strategies.
The noted economic data, along with the anticipation of upcoming events like the USD Presidential Election, has various implications for the USDCAD currency pair. The slight improvement in U.S. manufacturing orders could exert a modest upward pressure on the US dollar as it indicates an element of stability within a critical economic sector. However, with the USDCAD pair already exhibiting consolidation trends and a recent modest rise of 0.06% to 1.39172, traders might await clearer directional cues, particularly in light of potential volatility stemming from high-impact events such as a presidential election.
In essence, while the manufacturing data alone might offer a limited impact, it could bolster confidence in the U.S. dollar incrementally. However, the prevailing cautious sentiment aligns with the cautious consolidation, as market participants likely stay attuned to upcoming political developments that could dramatically reshape economic forecasts and influence dollar demand. Thus, any significant fluctuations in USDCAD will likely be influenced more by these overarching events than the modest manufacturing data.
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What can we expect from USDCAD today?
USDCAD on Monday rose 0.06% to 1.39172. Price is above 9-Day EMA while Stochastic is falling.
Updated daily direction for USDCAD looks mixed as the pair is likely to consolidate above 1.3896 (S1).
Looking ahead today, to see upside interest, we prefer to look at price breakout of last daily high of 1.39223 or trades above daily pivot 1.39092. Break above could target R1 at 1.39303. While to the downside, we are looking at 1.3896 (S1) and daily low of 1.38880 as support levels. USDCAD need to break on either side to indicate a short-term bias. A break above 1.39223 may suggest continuation after recent positive movement.
For the week to-date, take note that USDCAD is mixed as compared to the prior week.
Key levels to watch out:
| R3 | 1.39646 |
| R2 | 1.39435 |
| R1 | 1.39303 |
| Daily Pivot | 1.39092 |
| S1 | 1.3896 |
| S2 | 1.38749 |
| S3 | 1.38617 |
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