The USDCAD bias stays extra bullish with key resistance looming above

With the press convention over, the USDCAD is sustaining the worth above the excessive from June at 1.37969. Staying above that stage is vital within the short-term for retaining the pattern increased in full bullish mode.

Having stated that, key resistance from the 100 day transferring common at 1.38279, and the 61.eight% retracement of the transfer down from the Could excessive at 1.38335 might present some ranges for short-term sellers to lean/take revenue. Nonetheless, a transfer above each ought to give consumers much more confidence to push to the upside.

Trying on the each day chart, the worth of the USDCAD continues to be decrease on the 12 months by 560 pips or three.968%. That’s excellent news for Canadian inflation which is one thing that BOC’s Gov. Macklem spoke to.

Nonetheless, if the market is shifting extra to a “purchase US greenback mode”, there may be room to roam to the upside. Having stated that, getting above the 100 day transferring common is paramount for a extra bullish technical image.

Recall from earlier within the 12 months, the worth of the USDCAD (going again to November) was buying and selling principally in a spread after the run up from September 2024. The spikes to the upside had been tariff -related, however as time went on, the nervousness from tariffs began to ease after which completely fade with price exterior of the buying and selling vary. That led to the rotation to the draw back to 2025 low.

The correction now continues to be modest, nevertheless, we’re approaching a key potential turning level for the pair .

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