Will USDCAD continue to rise?

5 ต.ค. 2023

The USD/CAD exchange rate is approaching 1.3800 after the correction in the US dollar, while the oil price continues to decrease due to macroeconomic uncertainties. The direction of the US dollar and the Canadian dollar will depend on their respective official labor market data. The USD/CAD pair has reached a six-month high at 1.3785, and further upward movement towards the resistance at 1.3800 is anticipated. The Canadian dollar benefits from the strengthening of the US dollar and the decline in oil prices, as Canada is the main oil exporter to the United States. Low oil prices negatively impact the Canadian dollar, as it is a significant source of revenue for the country. In the global context of economic uncertainties, the market is concerned about oil demand, influencing the price of crude oil. The US dollar shows interest among buyers despite the correction, with the US Dollar Index (DXY) showing a slight recovery. Private payroll data in the United States, reported by ADP, indicates a decrease in September, potentially affecting the US economic outlook. Overall, the chart pattern of USD/CAD suggests a bullish reversal after a long consolidation. Breaking the key resistance at 1.3800 could pave the way for further gains, while a breakdown below 1.3450 could initiate a descent towards 1.3400 and beyond. The RSI shows a bullish trend, indicating a potential positive momentum in the market. After the US data, we have observed a quiet price retracement to the level of 1.3735, within a demand zone at H4, where the price could bounce to continue the upward movement towards the 1.38/1.39 zone. Let me know what you think, happy trading to everyone from Nicola, the CEO of Forex48 Trading Academy.