USDCAD Analysis
| Performance after Monday | |||||
| Period | Pct | Chg | Momentum | ||
| Monday | 0.11% | 14.7 Pips |  |
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| Week to-date | 0.09% | 12 Pips |  |
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| November | -0.08% | -10.9 Pips |  |
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Upcoming key events (London Time)
Wed 01:30 PM USD CPI Inflation Rate (12-mth)
What happened lately
On Monday, the USDCAD rose marginally by 0.11%, reaching 1.39245. The increase can be attributed to the current market conditions and lack of significant economic reports driving notable movements in currency pairs. The rise suggests a slight strengthening of the US dollar against the Canadian dollar.
No major economic news has been released recently, so market participants may be speculating. However, this situation is poised to change with the upcoming economic event, the US Consumer Price Index (CPI) Inflation Rate report. As reported by Economic Recap, this high-impact event will be released on Wednesday at 1:30 PM, and it is expected to influence the USD’s strength in the forex market.
The US CPI Inflation Rate is a critical indicator for gauging inflation levels, which can affect the Federal Reserve’s monetary policy decisions. A higher-than-expected CPI reading may lead to a hawkish stance from the Federal Reserve, potentially causing an appreciation of the US dollar. Conversely, a lower-than-expected figure could indicate a less aggressive approach from the central bank, possibly weakening the USD.
The outcome of the upcoming US CPI data is anticipated to impact the USDCAD pair significantly. Market participants are likely to monitor the report closely, as any deviation from forecasts could trigger volatility. If the CPI report suggests robust inflation, the USDCAD might continue to rise, reflecting a stronger US dollar. In contrast, a softer CPI reading could lead to a decline in the pair, reflecting a stronger Canadian dollar. Therefore, traders in the currency market should be attentive to the release and adjust their strategies accordingly based on the data and subsequent market reactions.
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What can we expect from USDCAD today?
USDCAD on Monday rose 0.11% to 1.39245. Price is above 9-Day EMA while Stochastic is rising.
Updated daily direction for USDCAD looks bullish as the pair ended higher after Monday trading session.
Looking ahead for the day, immediate upside resistance level is R1 at 1.39501 with break above could target R2 at 1.39758 or figure level area. While towards the downside, we are looking at daily low of 1.39000 as an important support. Break below this level could weaken the current bullish momentum. A break above 1.39507 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 | 1.40008 |
| R2 | 1.39758 |
| R1 | 1.39501 |
| Daily Pivot | 1.39251 |
| S1 | 1.38994 |
| S2 | 1.38744 |
| S3 | 1.38487 |
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