USDCAD Analysis

Upcoming key events (GMT+8)

No major events for the day.

What happened lately

The USDCAD pair experienced a modest increase of 0.15% on Tuesday, closing at 1.36620. The trading session saw the pair reach a high of 1.36760 and a low of 1.36290, indicating a period of consolidation.

Recent economic data releases have provided mixed signals for the USDCAD pair. In the United States, the Monthly Retail Trade figures for March showed a significant improvement, rising to 1.7% from 0.6% in February. The Retail Trade Control Group also saw an increase to 0.7% from 0.5% in the previous month. These positive retail figures suggest a strengthening consumer sector, which could have contributed to the upward movement in the USDCAD pair.

In contrast, Canadian inflation data revealed an increase in the CPI inflation rate for March to 2.4% from 1.8% in February. The Bank of Canada Core Inflation CPI also rose to 2.5% from 2.3%. However, the monthly core inflation rate decreased to 0.2% from 0.4%. These inflation figures indicate rising price pressures in Canada, which may impact future monetary policy decisions by the Bank of Canada.

There are no major upcoming events scheduled that could significantly impact the USDCAD pair in the immediate future. As such, market participants may continue to focus on the recent economic data releases to gauge the potential direction of the pair.

Overall, the market sentiment appears to be cautiously optimistic, with positive retail data from the United States supporting the US dollar, while rising inflation in Canada could lead to increased scrutiny of the Bank of Canada’s policy stance. Traders in Southeast Asia and beyond should remain attentive to any further economic developments that could influence the USDCAD pair’s trajectory.

What can we expect from USDCAD today?

USDCAD is experiencing a mixed outlook today, with a slight daily performance increase of 0.15%, closing at 1.36620. Traders should be cautious as the price remains below the 9-day EMA, and the stochastic indicator is falling within the oversold zone.

In a bullish scenario, USDCAD could see upward momentum if it breaks above the daily high of 1.36760. Traders should watch for resistance levels at R1: 1.36823 and R2: 1.37027, which could signal further strength in the pair.

Conversely, a bearish scenario may unfold if USDCAD fails to maintain its current levels and drops below the daily pivot of 1.36557. Key support levels to monitor are S1: 1.36353 and S2: 1.36087, which could indicate a continuation of the weekly downtrend if breached.

Key levels to watch out: