USD/CAD just bounced from a short-term support zone ahead of today’s U.S. and Canadian data releases!
Can the pair extend its uptrend?
Or will we see a short-term reversal in the next trading sessions?
USD/CAD: 15-minute
We’re barely into the second day of the week but it looks like forex bulls and bears are already all over the place.
And who could blame them? One one hand, China has been pumping weaker-than-expected economic data lately while property sector-related headlines are fanning the flames of contagion concerns.
On the other hand, easing inflation in the U.S. and other key economies got traders pricing in peak interest rates for the Fed and maybe even a rate cut as early as next year.
U.S. dollar bulls currently still have the upper hand against Loonie players as USD/CAD continues to show higher highs and higher lows on the 15-minute time frame.
In fact, the pair just bounced from an ascending channel support that was not far from the 100 and 200 SMAs on the chart.
Let’s see if the pair can sustain its uptrend when Canada prints its monthly inflation numbers and the U.S. releases its retail data shortly after.
Like other major economies, the markets see Canada’s inflation easing in July, which would ease the pressure on Bank of Canada (BOC) to keep tightening its monetary policies.
Meanwhile, U.S. consumer activity is expected to accelerate a bit from June to July.
Unless a risk-friendly, anti-USD sentiment sweeps the markets, U.S. and Canadian data could push USD/CAD to a previous highs, channel resistance, and the R1 (1.3480) Pivot Point level.
USD/CAD could even make new monthly highs if we see enough bullish momentum!
What do you think? Will USD see enough demand to extend its uptrend against CAD?
