USD/CAD seems to have paused its downswing after testing key assist ranges.
Might this be the springboard for a bounce within the coming days?
Right here’s the 4-hour chart we’re watching!
USD/CAD 4-hour Foreign exchange Chart by TradingView
USD/CAD has been trending decrease since final week, as rising expectations for a Fed price minimize have dragged the greenback down, regardless of some safe-haven demand providing restricted assist.
On the identical time, stronger-than-expected Canadian CPI studies cooled expectations for a Financial institution of Canada price minimize. That helped carry the Loonie, even with world commerce jitters and softer oil costs within the combine.
Do not forget that directional biases and volatility situations in market value are sometimes pushed by fundamentals. When you haven’t but achieved your fundie homework on the Canadian greenback and the U.S. greenback, then it’s time to take a look at the financial calendar and keep up to date on day by day basic information!
Is USD/CAD achieved with its downswing? The pair turned decrease from the 1.3750 space and is now hovering close to the 1.3600 psychological degree which may be the underside of a triangle sample.
That zone traces up with the S2 Pivot Level at 1.3616 and a development line assist that’s held since mid-June.
Maintain an eye fixed out for bullish candles and a stable maintain above 1.3600. That might open the door for a bounce towards the S1 zone at 1.3668 and even the 1.3721 Pivot Level.
But when we see extra purple and a clear break under 1.3600, the pair may keep on its downtrend path. Sellers would possibly purpose for the 1.3550 lows or take a shot at recent 2025 lows.
Whichever bias you find yourself buying and selling, don’t neglect to apply correct danger administration and keep conscious of top-tier catalysts that would affect general market sentiment.
Disclaimer:Please remember that the technical evaluation content material offered herein is for informational and academic functions solely. It shouldn’t be construed as buying and selling recommendation or a suggestion of any particular directional bias. Technical evaluation is only one side of a complete buying and selling technique. The technical setups mentioned are meant to spotlight potential areas of curiosity that different merchants could also be observing. Finally, all buying and selling choices, danger administration methods, and their ensuing outcomes are the only duty of every particular person dealer. Please commerce responsibly.
