- The USD/CAD weekly forecast exhibits optimism about US-Canada commerce talks.
- Demand for the greenback fell after the US Senate handed Trump’s controversial invoice.
- The pair recovered barely on the finish of the week after upbeat US employment numbers.
The USD/CAD weekly forecast exhibits optimism concerning progress in commerce negotiations between Canada and the US.
Ups and downs of USD/CAD
USD/CAD had a bearish week because the Canadian greenback gained on hopes of a commerce deal between Canada and the US. At the beginning of the week, knowledge indicated weak point within the US labor market. Non-public employment unexpectedly dropped, weighing on the greenback.
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On the identical time, demand for the greenback fell after the US Senate handed Trump’s controversial invoice. In the meantime, progress in talks between Canada and the US boosted the Canadian greenback. Nonetheless, the pair recovered barely on the finish of the week after upbeat US employment numbers.
Subsequent week’s key occasions for USD/CAD
Subsequent week, the US will launch the FOMC minutes. In the meantime, Canada will launch its essential month-to-month employment figures.
The FOMC minutes will present the tone of policymakers over the past assembly. Subsequently, it’d include clues on future coverage strikes. Thus far, merchants are pricing the primary fee lower in September.
In the meantime, Canada’s employment report will proceed to form the outlook for Financial institution of Canada fee cuts. Presently, market members are pricing a 37.25% probability of a lower in July.
USD/CAD weekly technical forecast: Second try at 1.3550 is weak
On the technical aspect, the USD/CAD value is making an attempt a second break beneath the 1.3550 help stage. The worth trades beneath the 22-SMA with the RSI beneath 50, supporting a bearish bias. USD/CAD has maintained a downtrend, with the worth making decrease highs and lows. Though the worth pierced the 22-SMA a number of instances, it revered a resistance trendline.
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Nevertheless, as bears problem the 1.3550 help a second time, it’s clear that momentum has weakened. The RSI has made a better low, suggesting fading momentum. Subsequently, if bears are weaker this time, they could fail to interrupt beneath the help.
In such a case, the worth would break above the SMA and the trendline resistance. This could permit bulls to retest the 1.4003 key resistance stage. Nevertheless, if bears regain momentum earlier than this occurs, the worth will break beneath 1.3550, persevering with the downtrend.
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