- USD / CAD Forecast shows that Loonie is traded near the five-month high month.
- Last week, the Canadian dollar gained over 2.4%.
- Participants in the market prices 60% chance for a pause box.
The USD / CAD forecast shows Loonie trading near the five-month high as traders predict the Bank of Canada break. At the same time, weak dollar supported CAD. Greenback collapsed last week as a falling data on the fall. At the same time, investors lost confidence in the American administration, which led to sales in American property.
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Last week, the Canadian dollar gained over 2.4% because the fall of dollars allowed most of their peers to rally. The dollar crashed after Trump imposed, and then paused reciprocal tariffs in many countries. The move caused a lot of insecurity in terms of trump policyms. As a result, investors lost confidence in the American administration. This caused steep sale in American property because market participants prefer safer options like gold.
At the same time, the race war between the United States and China escalated, increasing the fears of us in the recession. Further pressure down arrived from data on American inflation. Consumer inflation dropped by 0.1% compared to expectations for increasing 0.1%. Meanwhile, wholesale inflation fell by 0.4% compared to increases from 0.2%. Padua data increased expectations to reduce feedback rates.
On the other hand, market participants cost 60% chance that the Bank of Canada will pause on Wednesday. Such an outcome would pause aggressive harmonized cycle, strengthening CAD.
Today is key events USD / CAD
Today, market participants do not expect any key events. Therefore, a couple could extend last week’s move.
Technical Kad / CAD Technical Visiti: Drownend can pause in support zone
On the technical page, USD / CAD price enters the solid support zone. The zone contains 1,618 FIB extension and key psychological level 1,3802. The price reached this level after steep collapse. Bear bias is strong, because the price refers well under 30th, with RSI in a cover region.
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The bears went milestones when the price broke below the level of support from 1,4050. He confirmed the continuation of the trend reduction. However, after such a sharp fall, bear could be palled in the current support zone.
The break would allow the price to reset the 30-SMA or resistance level of 1,4050. However, since the bear bias is strong, the decay is likely to continue interruption below the support level 1,3802.
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