USDCAD declines sharply in April, closing at 1.35780
USDCAD Analysis
| Performance after Thursday | |||
| Period | Pct | Chg | Momentum |
| Thursday | -0.7746% | -106.0 Pips | ▼ |
| Week to-date | -0.6585% | -90.0 Pips | ▼ |
| April | -2.4148% | -336.0 Pips | ▼ |
Upcoming key events (GMT+8)
| Time (GMT+8) | Currency | Impact | Event |
| Fri 10:00 PM | USD | HIGH | ISM Manufacturing PMI | Apr |
What happened lately
The USDCAD pair experienced a notable decline on Thursday, dropping by -0.7746% to close at 1.35780. The trading session saw the pair reach a high of 1.36900 and a low of 1.35770. This downward movement contributed to a significant monthly depreciation of -2.4148%, or -336.0 pips, for April.
On the previous trading day, several key economic indicators were released in the United States. The Federal Reserve maintained its Federal Funds Rate at 3.75%, aligning with market expectations. Additionally, the PCE Price Index, excluding food and energy, showed a monthly increase of 0.3%, consistent with consensus estimates, while the annual rate rose to 3.2% from the previous 3%. The GDP annual rate was reported at 2%, slightly below the anticipated 2.3%, but a marked improvement from the prior 0.5%.
Looking ahead, market participants will be closely monitoring the upcoming ISM Manufacturing PMI for April, scheduled for release at 10:00 PM GMT+8. This high-impact event could provide further insights into the economic health of the United States and potentially influence the USDCAD pair.
The recent price action in the USDCAD appears to reflect a cautious market sentiment, as traders digest the latest economic data. The stable interest rate decision and the mixed signals from the PCE Price Index and GDP figures may have contributed to the pair’s downward trajectory. As the market awaits further economic indicators, traders in Southeast Asia should remain vigilant and consider the potential implications of the upcoming ISM Manufacturing PMI release on their trading strategies.
What can we expect from USDCAD today?
Today, the USDCAD pair is experiencing a bearish sentiment, with a daily performance of -0.7746%, closing at 1.35780. Traders should be cautious as the pair is trading below its 9-day EMA, indicating potential further downside movement.
📈 Bull Scenario In a bullish scenario, USDCAD could see upward momentum if it manages to break above the daily pivot at 1.3615. A sustained move above this level could target the first resistance (R1) at 1.3653, with further gains potentially reaching the second resistance (R2) at 1.3728. | 📉 Bear Scenario The bearish outlook remains strong, with the pair currently trading near its daily low of 1.35770. A break below the first support level (S1) at 1.354 could accelerate selling pressure, pushing the pair towards the second support (S2) at 1.3502. Given the overall bearish weekly performance, traders should monitor these support levels closely. |
Key levels to watch out:
| R3 | 1.3766 |
| R2 | 1.3728 |
| R1 | 1.3653 |
| Daily Pivot | 1.3615 |
| S1 | 1.354 |
| S2 | 1.3502 |
| S3 | 1.3427 |
