- The USD/CAD outlook displays warning amongst merchants forward of Canada’s federal election.
- Gross sales in Canada decreased by 0.4% in February.
- The greenback held on to final week’s positive factors as merchants awaited developments within the US-China commerce conflict.
The USD/CAD outlook displays warning amongst merchants forward of Canada’s normal election outcomes. Consequently, most have remained on the sidelines, protecting the pair in a good vary. In the meantime, the greenback was regular as market members hoped for a commerce deal between China and the US.
Canada’s normal election is on Monday. The result will decide the nation’s future, particularly its commerce relations with the US. Prime Minister Mark Carney’s ruling get together stays within the lead. Thus far, his authorities has been keen to do all that it takes to make sure the steadiness of Canada’s financial system. An surprising win might briefly weaken the loonie.
In the meantime, information launched final week confirmed that gross sales in Canada decreased by 0.4% in February. Nevertheless, this was an enchancment from the earlier month when gross sales fell by 0.6%. Furthermore, analysts predict a 0.7% rebound in March.
However, the greenback held on to final week’s positive factors as merchants awaited developments within the US-China commerce conflict. The 2 nations adopted a softer stance on tariffs final week, boosting threat urge for food. If tariffs come down, the probability of a commerce deal will enhance. On the identical time, the outlook for each economies would possibly brighten.
USD/CAD key occasions at present
USD/CAD technical outlook: Bulls take the lead however stay hesitant
On the technical aspect, the USD/CAD worth has pushed above the 30-SMA, indicating bulls have taken the lead. On the identical time, the RSI trades above 50, suggesting stronger bullish momentum. Nevertheless, volatility stays low and buying and selling is skinny, displaying indecision.
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Though bulls have taken cost, they aren’t keen to wager large and make vital swings above the SMA. The earlier decline slowed and paused when the worth reached a key assist zone comprising the 1.618 Fib extension stage and the 1.3800 assist stage.
Right here, bearish momentum pale, and the RSI made a bullish divergence. On the identical time, the worth started to stay near the SMA till it broke above. If volatility will increase, the worth is prone to retest the 1.4050 resistance stage. A break above this stage would verify a brand new uptrend.
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