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Instrument: USDCAD
Bullish Preference:
A buy position is envisaged if the price trades above 1.35203 with take profit at 1.35283
Bearish Preference:
A sell position is envisaged if the price trades below 1.35030 with take profit at 1.34946
Fundamentals:
USD
1:30 PM Empire State Manufacturing Index
3:00 PM Prelim UoM Consumer Sentiment
Comment:
Between mid-July and early September, USD/CAD embarked on a robust uptrend, but the pair encountered resistance near the psychological 1.3700 level before reversing lower just as oil broke out to multi-month highs, a development that added some support to the Loonie given Canada’s high sensitivity to energy markets.
Following the recent setback, USD/CAD is perched above a crucial support zone situated near the 1.3500 handle. Although there is a possibility that prices could establish a base around these levels before resuming their rebound, a downside breach of this floor would invalidate the previously constructive bias, setting the stage for a drop toward the 200-day simple moving average, followed by 1.3400.
Analysis: SCRUM Team
