USDCAD extends to the very best stage in 5-weeks as "No Deal" appears to be forthcoming

The offers are stacking up—and Canada is at present within the “No Deal” line.

Whereas Canada stays a part of the USMCA, ongoing negotiations search to revise or change key parts underneath stress from U.S. tariff threats. Central to the standoff is the so-called “letter price,” a 35% tariff outlined in Trump’s formal discover to Canada. If no settlement is reached by the August 1 deadline, that tariff may very well be imposed. Trump has mentioned he doesn’t count on a finalized deal by then. Prime Minister Carney known as the talks “intense,” however admitted absolutely tariff-free settlement now seems unlikely.

USDCAD continues larger for a fourth straight day, constructing on positive aspects since bottoming final Wednesday at a key trendline on the hourly chart. The pair is up roughly 200 pips (+1.50%) from final week’s low.

At this time, worth motion prolonged above the early July excessive at 1.37735 and briefly broke the 50% retracement of the Might excessive to June low transfer, which is available in at 1.3777. The session excessive reached 1.3780 earlier than easing again to 1.3765 at present.

What subsequent?

A sustained transfer above the 1.3777 midpoint would shift focus towards the June excessive at 1.3797, simply shy of the psychological 1.3800 stage. Break above that stage and open the door for additional upside momentum with the 61.eight% at 1.38335 as a goal

What would give consumers some concern after the sharp transfer larger?

On the draw back, there’s a swing space resistance between 1.3749–1.3759 (see crimson numbered circles), now appearing as near-term assist. Earlier at present, the worth stalled on the prime of that zone earlier than breaking larger—what was resistance is now assist.

This text was written by Emma Wang at investinglive.com.