- The USD/CAD is trading near the 1.34640 ratio as of this writing.
- The current price of the currency pair is near a high the USD/CAD touched last Friday when the U.S jobs numbers were reported and caused a red hot surge upwards from a low around the 1.33775 ratio in the blink of an eye.
- That is not the end of the trading saga for the USD/CAD, a high of nearly 1.35440 was challenged on Monday and Tuesday.
The reversal lower in the USD/CAD over the past day has been incremental and rather calm. The U.S will release weekly Unemployment Claims today which may cause a bit of a reaction in the USD/CAD, but traders who are technically inclined may feel rather calm regarding the potential impact of the report. The USD/CAD has been moving via strong behavioral sentiment the past few days as financial institutions seek equilibrium.
Middle of the Range Considerations for the USD/CAD
The USD/CAD is traversing a value for the moment, which technically since the 16th of January looks to be a middle ground. The broad Forex market has produced a rather volatile USD and the major currency pairs have experienced choppy trading conditions across the board, including the USD/CAD. Day traders have had to deal with speculative influences from financial institutions as they have altered their outlooks regarding a U.S Federal Reserve timeframe regarding interest rate cuts.
The choppy trajectory of the USD/CAD the past handful of days may remain tranquil today and tomorrow, allowing day traders to speculate on perceived support and resistance levels. However, traders should also be ready for tomorrow’s job numbers from Canada. While surprise data results from the U.S Unemployment Claims statistics today and Friday’s Canadian Employment Change would have an effect, there is the prospect that fluctuations in the USD/CAD will keep the currency pair within its known range.
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Speculative Targets for the USD/CAD in the Near-Term
- Financial institutions still may be leaning towards the notion the USD is ‘supposed’ to grow weaker over the mid-term. Day traders however should not get overly ambitious.
- If the weekly jobs numbers from the U.S today are received calmly this will allow the USD/CAD to potentially test support targets below around the 1.34550 to 1.34470 ratios.
- Reversals in the USD/CAD should be expected to be demonstrated today and tomorrow as the currency pair battles existing sentiment.
- Until new impetus is delivered which changes perspectives, a choppy price range is likely to continue in the USD/CAD.
Canadian Dollar Short Term Outlook:
Current Resistance: 1.34720
Current Support: 1.34575
High Target: 1.34940
Low Target: 1.34450
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