USD/CAD Outlook: Warning Prevails as Canada Awaits Election…

• The USD/CAD outlook displays warning amongst merchants forward of Canada’s federal election.

• Gross sales in Canada decreased by zero.Four% in February.

• The greenback held on to final week’s beneficial properties as merchants awaited developments within the US-China commerce battle.

The USD/CAD outlook displays warning amongst merchants forward of Canada’s normal election outcomes. Consequently, most have remained on the sidelines, maintaining the pair in a good vary. In the meantime, the greenback was regular as market individuals 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 occasion stays within the lead. Thus far, his authorities has been prepared to do all that it takes to make sure the steadiness of Canada’s economic system. An surprising win might briefly weaken the loonie. 

In the meantime, knowledge launched final week confirmed that gross sales in Canada decreased by zero.Four% in February. Nevertheless, this was an enchancment from the earlier month when gross sales fell by zero.6%. Furthermore, analysts predict a zero.7% rebound in March. 

However, the greenback held on to final week’s beneficial properties as merchants awaited developments within the US-China commerce battle. The 2 international locations adopted a softer stance on tariffs final week, boosting danger urge for food. If tariffs come down, the probability of a commerce deal will improve. On the similar time, the outlook for each economies would possibly brighten. 

USD/CAD key occasions as we speak

USD/CAD technical outlook: Bulls take the lead however stay hesitant

On the technical facet, the USD/CAD value has pushed above the 30-SMA, indicating bulls have taken the lead. On the similar time, the RSI trades above 50, suggesting stronger bullish momentum. Nevertheless, volatility stays low and buying and selling is skinny, exhibiting indecision. 

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Though bulls have taken cost, they aren’t prepared to guess large and make vital swings above the SMA. The earlier decline slowed and paused when the value reached a key assist zone comprising the 1.618 Fib extension stage and the 1.3800 assist stage. 

Right here, bearish momentum light, and the RSI made a bullish divergence. On the similar time, the value started to stay near the SMA till it broke above. If volatility will increase, the value is prone to retest the 1.4050 resistance stage. A break above this stage would verify a brand new uptrend.

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