USD/CAD continues to range-trade

USD/CAD continues to drift close to the 1.34 level. In Tuesday’s North American session, the pair is trading at 1.3388, up 0.11% on the day.

Until recently, the US dollar has played the role of the G-10 punching bag, as the major currencies have had their way with the greenback. The Canadian dollar took full advantage, as USD/CAD posted five successive monthly declines from April-August, as the pair plunged 7.8 percent during that time. However, the US dollar has finally found its groove, boasting gains of 2.5% in September. Last week, USD/CAD punched above the 1.34 line for the first time since early August.

Will the USD dollar rally continue? There are two key events this week which could have a significant impact on the fortunes of USD/CAD. Canada releases GDP for July, with a projected gain of 2.9 percent. The past two GDP readings have been higher than the forecasts, and if this happens again in the upcoming release, the Canadian dollar could gain ground. The end of the week brings US Nonfarm Payrolls, one of the most important events on the economic calendar. The forecast stands at 900 thousand, and a reading wide of this mark could trigger volatility from USD/CAD at the end of the week.

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USD/CAD Technical

  • 1.3395 is providing weak resistance. The next resistance line is at 1.3426
  • There is support at 1.3349, followed by support at 1.3326

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Kenny Fisher

Kenny Fisher

Market Analyst at OANDA
A highly experienced financial market analyst with a focus on fundamental analysis, Kenneth Fisher’s daily commentary covers a broad range of markets including forex, equities and commodities. His work has been published in several major online financial publications including Investing.com, Seeking Alpha and FXStreet. Based in Israel, Kenny has been a MarketPulse contributor since 2012.