USD/CAD refers to the US Dollar/Canadian Dollar currency pair and it shows how many CAD can be purchased for one USD....
Informally, the CAD is known as the Loonie, because of the loon bird which appears on one side of the Canadian $1 coin. USD/CAD is one of the most liquid, commonly traded major currency pairs, which means narrow spreads for traders. There are a variety of factors influencing the value of USD/CAD. One of the most significant of these is that the CAD is a commodity currency, meaning that its value is closely correlated to the value of a heavily traded commodity. The Canadian economy is strongly reliant on crude oil exports, so the currency will be impacted by oil prices and export capacity. In addition, the value of both currencies in the USD/CAD pair are influenced by the interest rate differential between the American Federal Reserve and the Bank of Canada. For example, an intervention by the Fed that strengthened the US dollar would weaken the Canadian dollar since more CAD would be required to buy a single USD dollar. It is also important to note that the Canadian dollar is one of the five major reserve currencies, meaning that many central banks and other leading financial institutions hold large amounts of CAD to use for international transactions as a way to minimize exposure to exchange rate risks.
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The US dollar initially did rally a bit during the trading session on Monday, but it turned around rather aggressively to slam into the 1.35 level against the Canadian dollar.
The first thing I see is that we touched the 200 Day EMA during the trading session, only to turn around and show signs of weakness again.
The first thing I see is that the 1.36 level continues to be very resistive.
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The US dollar has been quietly positive against the Canadian dollar during the early hours on Monday as it looks like we are trying to threaten the 1.36 level.
The US dollar rallied a bit during the course of the trading session on Tuesday and we have launched from the 1.35 level, and it looks like we are trying to recover.
In my daily analysis of the US dollar against the Canadian dollar, the first thing I see is that we are rallying quite hard, after initially falling a bit during the trading session.
In our daily US dollar, Canadian dollar analysis, it's easy to see that the market is trying to see a lot of volatility come into the picture.
The US dollar initially did rally a bit during the trading session on Friday but gave back gains as it looks like a significant amount of resistance is sitting just above.
During the Wednesday session, we saw the US dollar drop somewhat significantly against the Loonie, reaching the 50-day EMA.
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It's easy to see that there's been a lot of selling pressure.
The US dollar has been somewhat sideways during the last couple of sessions, but especially on Tuesday. All things being equal, this is a market that does look a little bit stretched.
The US dollar saw a little bit of trouble against the Canadian dollar during trading on Friday, as there is a lot of noise just above the crucial 1.38 level.
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In my daily US dollar against Canadian dollar analysis, I noticed that the 1.38 level is an area that has been important multiple times in the past and it has been again on Wednesday.
This is a pair that continues to pressure the upside, and I think it’s probably only a matter of time before we truly find a lot of momentum entering this market.