USD/CAD: Upward Heights Remain in Sight and Perceptions Stir

Upon opening for trading after the weekend, this morning’s price action has remained rather steady with occasional choppiness, and traders should expect a fair amount of volatility in the near term to remain.

The USD/CAD remains within the upper realms of its long term price range and traders will need to remain diligent while pursuing the Forex pair.

The USD/CAD is near the 1.37750 level as of this writing, remaining solidly within the upper realms of its long term range.  On the 28th and 30th of September the USD/CAD was able to move up to the 1.38300 level before being pushed lower.  Upon opening for trading after the weekend, this morning’s price action has remained rather steady with occasional choppiness, and traders should expect a fair amount of volatility in the near term to remain.

A USD/CAD Dance of Price Values Tested as Nervous Forex Conditions Persist

A low of nearly 1.37375 was tested in early trading today, which then ignited a reversal higher. Technically the USD/CAD is certainly within the upper realms of its charts, while fundamental considerations remain rather complex and tricky. The Bank of Canada will have their interest rate meeting in the last week of October and a hike is expected to keep pace with the U.S Fed.

The rather conflicting fundamental notions, leaves the door wide open for technical traders and perceptions regarding behavioral sentiment.  Speculators always need to anticipate volatile conditions and have their risk management ready, but the coming days could prove quite choppy due to the nervous sentiment in the global markets which is having an effect on the USD/CAD. Support levels near the 1.37600 ratio should be watched carefully; if it is proven vulnerable momentum might carry the USD/CAD slightly lower.

Overbought Sentiment may remain in Speculative Mindsets but is it correct?

  • Traders should watch technical charts to understand the USD/CAD will likely produce rather choppy consolidated price action in its upper tier.
  • Like the U.S, Canada will publish its jobs data this coming Friday and the statistics will produce fast volatile conditions for the USD/CAD.

Global market sentiment will be a big ingredient in the USD/CAD near term. If global equities remain fragile this may cause the USD/CAD to stay within its higher realms rather steadily. However, it would not be surprising to see support levels to continue to face challenges too, if the USD/CAD produces a rather consolidated range near term.

The acknowledgement the USD/CAD was testing long term highs on the 28th and 30th of September which had last been seen in the spring of 2020 should not be forgotten. Nervous conditions easy to see and this is likely going to cause more turmoil in Forex and the USD/CAD will be part of the mix. Short term quick hitting trades for speculators may be the best way to wager for those who cannot afford to carry positions overnight.

Canadian Dollar Short Term Outlook:

Current Resistance: 1.37850

Current Support: 1.37550

High Target: 1.38395

Low Target: 1.36988

USD/CAD

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Robert Petrucci
Robert Petrucci has worked in the Forex, commodity, and financial profession since 1993. Important aspects of his work involve risk analysis and advisory services. As an advisor in a Family Office he maintains a conservative approach for wealth management and investments. Robert also works in private finance with investors and companies delivering financial and management services.

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