Instrument: USDCAD
Bullish Preference:
A Buy position is envisaged if the price trades above 1.336226 With Take profit at 1.36375
Bearish Preference:
A Sell position is envisaged if the price trades below 1.35887 with Take profit at 1.35755
Fundamentals:
USD: Core PCE Price Index m/m 2:30 PM
Unemployment Claims 2:30PM
Comment:
USD/CAD has also corrected lower this month, but it has started to perk up after encountering support near 1.3570-1.3555, where the 100-day simple moving average converges with a short-term rising trendline. Maintaining this floor will bring stability to the pair and may create the right conditions for a rebound toward 1.3630. Further strength could redirect focus towards the 1.3700 handle.
On the other hand, if USD/CAD resumes its descent and breaks below cluster support stretching from 1.3570 to 1.3555, we may see a drop towards the 200-day simple moving average, just above the psychological 1.3500 mark. Prices could gain a foothold in this area on a pullback, but in the event of a breakdown, a move towards 1.3400 seems very possible.
Analysis: SCRUM Team
