- The USD/CAD pair had a bullish week, driven by Fed rate hike expectations.
- Economic data and market sentiment will be key factors for the upcoming week’s movement.
- Technical analysis suggests potential trading opportunities with essential support and resistance levels.
The USD/CAD pair displayed bullish momentum during the week, influenced by increasing expectations of a Federal Reserve rate hike. This surge can be attributed to optimism surrounding the potential interest rate adjustment.
The performance of this pair in the upcoming week will heavily depend on economic data releases and prevailing market sentiment. Traders should closely monitor these factors as the market eagerly anticipates the Fed’s official announcement on interest rates.
From a technical perspective, the USD/CAD pair resumed its upward movement, reaching a peak at 1.3693 before experiencing a slight pullback. The future direction of the pair hinges on the forthcoming US Consumer Price Index (CPI) data, which could significantly influence the Fed’s decision-making process.
If the pair manages to break above 1.3693, it’s likely to maintain its bullish momentum, targeting key levels at 1.3860 and 1.3976, both representing previous resistance levels. Conversely, a decline below the support level at 1.3488 could indicate a short-term correction, with support found at 1.3091.
Comparison Table: USD/CAD vs. CAD/USD
Comparing USD/CAD with its inverse pair CAD/USD, we observe a bullish market sentiment for USD/CAD, reflecting optimism surrounding the US dollar’s prospects.
In conclusion, the USD/CAD pair displayed bullish tendencies driven by the US dollar’s strength due to expectations of a Fed rate hike. Economic data and market sentiment will continue to play vital roles in shaping its future movements. Traders should closely monitor key technical levels for potential trading opportunities.