USD/CAD: Resistance Levels to Watch in the Short Term
USD/CAD Fundamental and Technical Analysis for 28 September 2023
Fundamental Analysis
The Canadian dollar has been under pressure in recent weeks, falling to its lowest level against the US dollar in over two years. This is due to a number of factors, including:
Higher US interest rates: The Federal Reserve has been raising interest rates aggressively in an effort to combat inflation. This has made US dollar assets more attractive to investors, leading to a sell-off in the Canadian dollar.
Weaker oil prices: Oil is Canada's main export, and a decline in oil prices can have a significant impact on the Canadian dollar. Oil prices have been falling in recent months due to concerns about a global recession.
Risk aversion: Investors are becoming more risk averse due to the ongoing war in Ukraine and the rising cost of living. This is leading to a flight to safety into US dollar assets.
Technical Analysis
On the technical charts, USD/CAD is in a bullish trend. The pair has broken above its downtrend line and is now trading above its 200-day moving average. This suggests that the bulls are in control and that the pair could continue to move higher in the short term.
On the 30-minute chart, USD/CAD is facing resistance at 1.3600. If the pair can break above this level, it could target 1.3650 and 1.3700. On the downside, support is at 1.3550 and 1.3500.
On the 4-hour chart, USD/CAD is facing resistance at 1.3650. If the pair can break above this level, it could target 1.3700 and 1.3750. On the downside, support is at 1.3600 and 1.3550.
On the daily chart, USD/CAD is facing resistance at 1.3700. If the pair can break above this level, it could target 1.3750 and 1.3800. On the downside, support is at 1.3650 and 1.3600.
Overall Outlook
The Canadian dollar is under pressure against the US dollar due to a number of factors, including higher US interest rates, weaker oil prices, and risk aversion. On the technical charts, USD/CAD is in a bullish trend. The pair is facing resistance at 1.3600 on the 30-minute and 4-hour charts, and at 1.3700 on the daily chart. If the pair can break above these resistance levels, it could continue to move higher in the short term.
I hope this post is helpful.
This analysis represents is based on the information at the date it is posted.
This analysis does not represent professional and/or financial advice.
You alone assume the sole responsibility of evaluating the merits and risks associated with the use of any information or other content found on this profile before making any decisions based on such information.
Any feedback is encouraged and appreciated. Thank you and have a nice day!
Fundamental Analysis
The Canadian dollar has been under pressure in recent weeks, falling to its lowest level against the US dollar in over two years. This is due to a number of factors, including:
Higher US interest rates: The Federal Reserve has been raising interest rates aggressively in an effort to combat inflation. This has made US dollar assets more attractive to investors, leading to a sell-off in the Canadian dollar.
Weaker oil prices: Oil is Canada's main export, and a decline in oil prices can have a significant impact on the Canadian dollar. Oil prices have been falling in recent months due to concerns about a global recession.
Risk aversion: Investors are becoming more risk averse due to the ongoing war in Ukraine and the rising cost of living. This is leading to a flight to safety into US dollar assets.
Technical Analysis
On the technical charts, USD/CAD is in a bullish trend. The pair has broken above its downtrend line and is now trading above its 200-day moving average. This suggests that the bulls are in control and that the pair could continue to move higher in the short term.
On the 30-minute chart, USD/CAD is facing resistance at 1.3600. If the pair can break above this level, it could target 1.3650 and 1.3700. On the downside, support is at 1.3550 and 1.3500.
On the 4-hour chart, USD/CAD is facing resistance at 1.3650. If the pair can break above this level, it could target 1.3700 and 1.3750. On the downside, support is at 1.3600 and 1.3550.
On the daily chart, USD/CAD is facing resistance at 1.3700. If the pair can break above this level, it could target 1.3750 and 1.3800. On the downside, support is at 1.3650 and 1.3600.
Overall Outlook
The Canadian dollar is under pressure against the US dollar due to a number of factors, including higher US interest rates, weaker oil prices, and risk aversion. On the technical charts, USD/CAD is in a bullish trend. The pair is facing resistance at 1.3600 on the 30-minute and 4-hour charts, and at 1.3700 on the daily chart. If the pair can break above these resistance levels, it could continue to move higher in the short term.
I hope this post is helpful.
This analysis represents is based on the information at the date it is posted.
This analysis does not represent professional and/or financial advice.
You alone assume the sole responsibility of evaluating the merits and risks associated with the use of any information or other content found on this profile before making any decisions based on such information.
Any feedback is encouraged and appreciated. Thank you and have a nice day!
I hope this was helpful.
This analysis represents my thoughts at the date it is posted.
This analysis does not represent professional and/or financial advice.
Trade wisely!
ymagnify.com/
This analysis represents my thoughts at the date it is posted.
This analysis does not represent professional and/or financial advice.
Trade wisely!
ymagnify.com/
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