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U.S. Dollar / Canadian Dollar

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USDCAD trade ideas

USDCAD ANALYSIS ON H4 CHART.Overall, USD/CAD is ranging across. Recently, USD/CAD broke above the key level of 1.27. The Canadian GDP m/m data (Actual: 0.0%, Forecast: 0.0%, Previous: 0.6%) released yesterday indicated no change in economic growth during last December. The Bank of Canada (BoC) will be announcing their monetary policy decision later at 2300 (GMT+8). It is expected that the central bank will be hiking interest rate by 0.25%. With inflation in Canada rising to a 30-year high level of 5.1%, it is possible that the BoC may be hiking interest rate by 0.50%. If so, CAD may receive a strong boost. USD/CAD’s next support zone is at 1.26100 and its next resistance zone is at 1.29200. Look for short-term buying opportunities of USD/CAD.
Long
by charliedavies770
Key EMAs defend USDCAD bulls ahead of BOC rate-hikeBank of Canada (BOC) is up for the first rate-hike since 2017 but the markets are have already priced in a 0.25% lift to the benchmark rate, which in turn may not entertain the USDCAD bears until forward guidance appears hawkish. Technically, 100-EMA and 200-EMA offer strong supports near 1.2660 and 1.2640 to limit the quote’s short-term downside. If the pair bears conquer the 1.2640 support, a downward trajectory towards the 61.8% Fibonacci retracement of October-December 2021 upside, near 1.2550, can’t be ruled out. However, an upward sloping trend line from October 2021, near 1.2520, will be a tough nut to crack for the sellers afterward. Alternatively, a disappointment, or negative surprise, from the forward guidance could trigger the quote’s recovery moves towards the mid-December 2021 low near 1.2760. Following that, the 1.2800 threshold and 1.2850 levels may entertain USDCAD bulls before directing them to February’s peak of 1.2877. Overall, BOC may not please USDCAD bears until doing more than what is already expected. Other than the BOC, OPEC+ meeting and geopolitics also keep the spotlight on the Loonie pair as prices of Canada’s key export WTI crude oil rally of late.
by MTradingGlobal
USDCAD hovers inside fortnight-long rectangle, BOC’s Macklem eyeUSDCAD remains chopped inside a 140-pip trading range in the last two weeks, recently fading the bounce off the lower end comprising 200-SMA. Given the steady RSI and a pullback in oil prices, Canada’s key export, the Loonie pair is up for further recovery. However, comments from the Bank of Canada (BOC) Governor Tiff Macklem will be crucial to watch for intraday directions. That said, the recovery moves will initially be challenged by the 61.8% Fibonacci retracement (Fibo.) of late December-January declines, around 1.2770. Following that, a convergence of the stated range and the monthly resistance line near 1.2790 and the 1.2800 threshold will challenge the USDCAD bulls. In a case where the Loonie prices cross the 1.2800 hurdle, January’s high of 1.2813 may act as a validation point for the rally targeting the late 2021 peak of 1.2963. Alternatively, pullback moves remain elusive beyond the stated range’s support, around 1.2650. Even if the quote drops below 1.2650, the 100-SMA level surrounding 1.2630 will challenge the downside before directing the USDCAD bears towards the 23.6% Fibo. near 1.2565. During the quote’s weakness past 1.2565, January’s bottom of 1.2450 will be in focus. Overall, USDCAD has more downside filters than the otherwise case, which in turn can tease bulls for a quick rule on the upbeat outcome.
by MTradingGlobal