- The USD/CAD is near the 1.35935 price as of this writing and continues to show an ability to incrementally climb higher.
- Upper values hit last Friday and early this Monday remain within sight. The USD/CAD was able to touch a low of nearly 1.35515 yesterday, but then produced a rather steady reversal upwards.
- Yesterday’s weaker than anticipated CB Consumer Confidence results from the U.S played into the brief choppiness, but financial institutions continue to show they are nervous.
Outlook regarding the U.S Federal Reserve remains problematic. The ability of the USD/CAD to produce a trend higher since the beginning of the year is noteworthy. Although it must be said the climb to values again around the mid-December ratios within the USD/CAD are more than intriguing. The choppy conditions of the currency pair mirror the broad Forex market. The USD has been rather stormy because financial institutions remain unclear regarding the ability of the U.S Fed to cut interest rates.
Anticipation and Outlook are Keeping USD/CAD Traders Anxious
USD/CAD traders are not the only Forex speculators who are anxious. The rather whipsaw results over the past week – in fact the last three months – has been experienced by all. Solid risk management has been extremely important. The ability of the USD/CAD to now bounce along values seen in the second week of December has technical traders likely looking at their charts attentively.
Tomorrow U.S data will come which will shake Forex and the USD/CAD once again. Gross Domestic Product numbers regarding growth and inflation will be published and financial institutions will react to the results quickly. Traders should also note that because of the Good Friday holiday and long Easter weekend, Forex conditions could be very swift on Thursday as everyone tries to positions before disappearing for a handful of days.
Short-Term Highs and Take Profit Orders for the USD/CAD
U.S data has proven very mixed the past couple of months. Inflation has proven stubborn and growth numbers have also been stronger than expected, this has not helped the U.S Federal Reserve’s monetary policy stance, which they have gone on the record by saying they believe they would become more dovish in 2024.
- If tomorrow’s growth numbers are weaker than expected and inflation via the GDP Price Index is negative, this could spark USD/CAD selling.
- Predicting what the U.S data outcome is going to be is very dangerous.
- Traders putting on wagers before the U.S data tomorrow who plan on holding onto their positions need to have their take profit and stop loss orders working to manage the fast conditions which will definitely be seen.
Canadian Dollar Short Term Outlook:
Current Resistance: 1.35965
Current Support: 1.35830
High Target: 1.36250
Low Target: 1.35210
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