USDCAD Analysis

Performance after Thursday
Period	Pct	Chg	Momentum
Thursday	-0.54%	-71.5 Pips
Week to-date	-1.2%	-159.5 Pips
July	-0.99%	-130.6 Pips

Upcoming key events (London Time)

Fri 03:00 PM USD Michigan Index of Consumer Sentiment

What happened lately

🇺🇸 U.S. Producer Price Index ex Food & Energy (1-mth) in June unchanged at 0.1% compared to previous report in May.
🇨🇦 Canada Bank of Canada Policy Interest Rate rose to 5% compared to previous rate 4.75% Bank of Canada
🇺🇸 U.S. CPI Inflation Rate excluding Food and Energy sectors (1-mth) in June below forecast and dropped to 0.2% compared to previous figure 0.4% in May Bureau of Labor Statistics

What can we expect from USDCAD today?

USDCAD on Thursday dropped -0.54% to 1.31115. Price is below 9-Day EMA while Stochastic is falling.

Updated daily direction for USDCAD looks bearish as the pair posted lower in Thursday trading session.

Looking ahead for the day, immediate support level is at S1 1.30762 with break below could see further selling pressure towards S2 at 1.3041. To the upside, with the current momentum bearish, we prefer to look at breakout of the recent daily high of 1.31943 as a potential indicator of buying interest. Failure to break the resistance level would continue to echo bearish sentiment. A close below 1.31000 would indicate selling pressure.

For the week to-date, take note that USDCAD is bearish as the pair posted lower by -1.2%.

Key levels to watch out:

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CPI for all items rises 0.2% in June; shelter up. Bureau of Labor Statistics
Monetary Policy Report – July 2023. Bank of Canada
Bank of Canada raises policy rate 25 basis points, continues quantitative tightening. Bank of Canada