Daily Market Forecast By Capitalcore

[Capitalcore]

USDCAD Price Analysis and Movement Outlook

Based on the upcoming economic events, the USDCAD pair, nicknamed the "Loonie" due to the Canadian one-dollar coin featuring a loon, is poised for a volatile day. The fundamental outlook is complex as multiple high-impact US data releases clash with a single, but significant, Canadian GDP report. With Federal Reserve Governor Christopher Waller's speech on monetary policy, the US dollar's strength will be heavily influenced by any hawkish remarks about interest rates and inflation containment, particularly ahead of the US Core PCE price index release - the Fed's preferred inflation gauge. A higher-than-forecast Core PCE, coupled with positive readings from other reports like Personal Income and Expenditures, the Chicago PMI, and UoM consumer sentiment, could signal a resilient US economy, providing strong bullish momentum for the USD. Conversely, a weaker-than-expected Canadian GDP figure would further disadvantage the Canadian dollar, potentially reinforcing the bullish USD/CAD forex trend. Traders will be closely monitoring these releases for price action clues on the USD CAD daily chart technical analysis.

Image

Chart Notes:
• Chart time-zone is UTC (+03:00)
• Candles’ time-frame is 4h.
The USD/CAD H4 live chart technical analysis today shows the pair is in a long-term slightly bullish trend, but has recently experienced a short-term bearish correction. The Loonie price has moved from around 1.39250 to 1.37400 over the last six days. However, recent price action suggests a potential reversal as the last two candles have corrected upward after touching a key support level, which is highlighted by a red box. This support level will be a crucial point to watch for traders. A significant challenge for the bulls is the bearish trend line, which is acting as the first resistance. A breakout above this trend line and the red rectangle would be a bullish signal and a key confirmation of a sustained upward move. The price is also trading below the red Ichimoku cloud, which has expanded and whose bands are moving downward, signaling a strong bearish sentiment in the short-term forex trend. Additionally, the Williams %R 14 indicator is at -90.02, which indicates that the pair is significantly oversold, and supports the possibility of an upward correction or a trend reversal. Traders should look for a break of the bearish trend line and the Ichimoku cloud to confirm a new bullish price action. 

•DISCLAIMER: Please note that the above analysis is not an investment suggestion by “Capitalcore LLC”. This post has been published only for educational purposes.

Capitalcore