USDCAD post FOMC & pre NFP
Fundamental Analysis
The US Dollar is making a small comeback after a dip last week, which is good news for the USD/CAD pair. The recent uncertainty in the stock market has made investors cautious, and many are turning to the US Dollar as a safe investment. However, the recent upturn in crude oil prices is also supporting the Loonie, which is the Canadian dollar linked to commodity prices.
The Federal Reserve's recent announcement about interest rates has caused some uncertainty, which is making investors cautious about the USD/CAD pair. The Fed recently increased interest rates and suggested that there may be a pause in June, which is making people nervous about what might happen next. Despite this, the Fed also hinted that they may soon hit the terminal rate of the current hiking cycle, which could mean good news for the USD.
There are some concerns about the US debt ceiling and fears of a potential banking crisis, which is keeping US Treasury bond yields low and could prevent the US Dollar from making any significant gains for now.
Investors are eagerly anticipating the release of the Weekly Initial Jobless Claims data from the US, which is due to come out later today. This data, along with broader market sentiment and US bond yields, will determine how much demand there is for the USD and could influence the USD/CAD pair. Traders will also be watching oil prices closely and are waiting for Bank of Canada Governor Tiff Macklem's speech later today for more insights.
The US monthly jobs report, known as the NFP report, is set to be released tomorrow, on Friday, which will have a significant impact on the USD and could influence the USD/CAD pair. Investors will be paying close attention to this report and the simultaneous release of Canadian monthly employment details to see which direction the pair will move next.
Technical Analysis
The USD/CAD pair is currently ranging & seems to be making a pull back into an OB zone as well as 62/70 fib levels. If so, we are expecting USD/CAD to give more more push up and to reach the 1.37000 price level at a minimum. From there we would expect a bearish reversal down to 1.34000 price zone.
There is a possibility that price may continue to the upside if breaks out of the 1.3700 price zone. But right now we are looking at going long from current level, we would be looking at price action into H1 or even M15 for an entry (if confirmed as per the Price Action patterns), this opportunity may not present itself before tomorrow at NFP report time, let’s see!
The US Dollar is making a small comeback after a dip last week, which is good news for the USD/CAD pair. The recent uncertainty in the stock market has made investors cautious, and many are turning to the US Dollar as a safe investment. However, the recent upturn in crude oil prices is also supporting the Loonie, which is the Canadian dollar linked to commodity prices.
The Federal Reserve's recent announcement about interest rates has caused some uncertainty, which is making investors cautious about the USD/CAD pair. The Fed recently increased interest rates and suggested that there may be a pause in June, which is making people nervous about what might happen next. Despite this, the Fed also hinted that they may soon hit the terminal rate of the current hiking cycle, which could mean good news for the USD.
There are some concerns about the US debt ceiling and fears of a potential banking crisis, which is keeping US Treasury bond yields low and could prevent the US Dollar from making any significant gains for now.
Investors are eagerly anticipating the release of the Weekly Initial Jobless Claims data from the US, which is due to come out later today. This data, along with broader market sentiment and US bond yields, will determine how much demand there is for the USD and could influence the USD/CAD pair. Traders will also be watching oil prices closely and are waiting for Bank of Canada Governor Tiff Macklem's speech later today for more insights.
The US monthly jobs report, known as the NFP report, is set to be released tomorrow, on Friday, which will have a significant impact on the USD and could influence the USD/CAD pair. Investors will be paying close attention to this report and the simultaneous release of Canadian monthly employment details to see which direction the pair will move next.
Technical Analysis
The USD/CAD pair is currently ranging & seems to be making a pull back into an OB zone as well as 62/70 fib levels. If so, we are expecting USD/CAD to give more more push up and to reach the 1.37000 price level at a minimum. From there we would expect a bearish reversal down to 1.34000 price zone.
There is a possibility that price may continue to the upside if breaks out of the 1.3700 price zone. But right now we are looking at going long from current level, we would be looking at price action into H1 or even M15 for an entry (if confirmed as per the Price Action patterns), this opportunity may not present itself before tomorrow at NFP report time, let’s see!
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