USDCAD sees modest rise, remains in consolidation phase
USDCAD Analysis
| Performance after Wednesday | |||
| Period | Pct | Chg | Momentum |
| Wednesday | 0.07% | 9.0 Pips | ▲ |
| Week to-date | -0.16% | -22.0 Pips | ▼ |
| April | -1.75% | -243.0 Pips | ▼ |
Upcoming key events (GMT+8)
No major events for the day.
What happened lately
The USDCAD pair experienced a modest increase of 0.07% on Wednesday, closing at 1.36710, with a high of 1.36740 and a low of 1.36410. This movement suggests that the pair is currently in a consolidation phase.
Recent economic data releases from the United States have been influential in the forex market dynamics. Notably, the Monthly Retail Trade figures for March showed a significant increase to 1.7%, up from 0.6% in February. Additionally, the Retail Trade Control Group rose by 0.7% in March, compared to 0.5% in February. These positive retail figures indicate a robust consumer spending environment, which could be supportive of the USD.
Moreover, the Monthly Retail Trade excluding Automobiles surged to 1.9% in March, up from a previously revised 0.7%. However, the Pending Home Sales for March declined to 1.5%, down from a revised 2.5% in February, indicating some softness in the housing market.
There are no major upcoming economic events scheduled that could impact the USDCAD pair in the immediate future.
Overall, the market sentiment appears to be cautiously optimistic for the USD, driven by strong retail sales data. However, the decline in pending home sales may temper some of this optimism. The consolidation in the USDCAD pair suggests that traders are awaiting further economic cues or developments before making significant directional bets.
What can we expect from USDCAD today?
Today’s outlook for the USDCAD pair remains mixed, with a slight daily performance increase of 0.07%, closing at 1.36710. Traders should be cautious as the pair navigates between its daily high of 1.36740 and low of 1.36410.
📈 Bull Scenario A bullish scenario could unfold if the USDCAD breaks above the daily pivot of 1.3662 and sustains momentum past the resistance level at R1 of 1.3683. Further bullish pressure might push the pair towards the next resistance at R2 of 1.3695, especially if the price manages to rise above the 9-day EMA, which it currently sits below. | 📉 Bear Scenario Conversely, a bearish trend may be triggered if the USDCAD falls below the support level at S1 of 1.365. A continuation of this downward movement could see the pair testing the next support at S2 of 1.3629, particularly as the stochastic indicator is currently falling, suggesting potential downward pressure. |
Key levels to watch out:
| R3 | 1.3716 |
| R2 | 1.3695 |
| R1 | 1.3683 |
| Daily Pivot | 1.3662 |
| S1 | 1.365 |
| S2 | 1.3629 |
| S3 | 1.3617 |
