Canadian Greenback Value Forecast: USD/CAD Spikes from Assist

Canadian Greenback, USD/CAD, CAD Speaking Factors:

The US Dollar is continuous to run increased after final week’s FOMC price determination. With the Fed upgrading their price forecasts, there’s now extra incentive for merchants to be on the lengthy facet of the Dollar, and this has created ripple results throughout the FX market as markets alter to this new actuality of a extra hawkish Fed.

In USD/CAD, that transfer appeared delayed, nonetheless, and I had looked into the matter on Monday while highlighting a pair that was persevering with to carry an enormous spot of help even though the USD was breaking out elsewhere, with the potential for a good higher topside transfer. That massive spot of help wasn’t new both, as this was a zone that had been in-play in varied methods all through 2021 commerce, serving to to set help within the first week of the New Yr and frequently coming again into the equation since.

The zone in query runs from round 1.2622 as much as 1.2635, with the previous worth being the 23.6% retracement of the long-term 2002-2007 main transfer. That zone is highlighted on the under chart in inexperienced.

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USD/CAD Day by day Value Chart

USDCAD Daily Price Chart

Chart ready by James Stanley; USDCAD on Tradingview

In that article, I’d additionally highlighted a few topside targets for these subsequent stops of resistance. The primary of which has been traded by way of, at 1.2695. The second seems to be very close to coming into play at 1.2762, which is simply above at this time’s present excessive. Past that, the subsequent massive spot on the chart is the 1.2800 deal with, after which each 1.2896 and 1.2949 stay of curiosity, on the best way as much as the 1.3000 psychological stage.

For brief-term situations, that prior spot of resistance round 1.2695 might be re-purposed as higher-low help potential for bullish continuation themes.

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USD/CAD 4-Hour Value Chart

USDCAD Four Hour Price Chart

Chart ready by James Stanley; USDCAD on Tradingview

— Written by James Stanley, SeniorStrategist for DailyFX.com

Contact and comply with James on Twitter: @JStanleyFX

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