- USD / CAD frames indicates a slight jump in the dollar.
- All the eyes are now on the course of 1. August.
- The European Union plans to delay tariff retaliation.
Outlook USD / CAD suggests a mild dollar jump as traders await updates on tariffs. Greenback fell on Monday in the middle of insecurity on current trade talks. At the same time, market participants were concerned about the independence of the Fedar in the middle of the continued conflict of Trump and Powell.
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All the eyes are now on the course of 1. August. Talks between the United States and its trading partners are withdrawn, and hopes for several trading bids are pale. The European Union is already planning retaliation, indicating that officials are not convinced that an agreement will be reached before the new deadline.
Relication would mean a dining room that would further slow down the American economy. This would put pressure on the Fed at lower borrowing costs, throwing up the dollar.
Meanwhile, Canada can face 35% of tariffs on goods if not agreed within the deadline. Such an outcome would have a significant adverse effect on the economy. However, at this point, traders are still hoping for agreement or extension by the deadline.
By the way, the conflict between Trump and Povel could interfere, especially after ruin the American inflation report. Bets on reducing feedback rates have declined, and the central bank can remain careful. This conflict has collected concern over the independence of the Central Bank.
Today is key events USD / CAD
Merchants do not expect key economic reports to Canada or the United States. Therefore, the focus will remain in the store.
USD / CAD Technical Outlook: Bears near Support from 1,3650
On the technical page, the USD / CAD price broke below 30 day simple movement (SMA), indicating the bear shift in feeling. At the same time, RSI fell under 50, showing a stronger bear moment. The change has arrived after the price failed to be violated above the level of resilience at 1,3750.
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Initially, the bulls took control by pressing the price above the 30-day simple average (SMA). However, shortly afterwards, the swing faded and the bulls stop making large swings. Instead, the price is stuck close to 30ths. The bears finally took responsibility when the shallow postcreena paused near the resistance to 1,3750.
However, USD / CAD must press lower to confirm the new trend. This means that a support level of 1,3650 is composed. The break below would solidify the fall and cleaned the way to the support of 1,3575.
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