USD/CAD Exposes to Risks of Losses, US GDP Report Anticipated

  • USD/CAD experienced a sharp decline from the 1.3220 resistance region.
  • On the 4-hours chart, a significant barrier is developing close to 1.2960.
  • For the second consecutive month, Federal Reserve officials increased interest rates by 75 basis points.
  • In Q2 2022, the US Gross Domestic Product may increase by 0.4%. (Preliminary).

Technical Analysis of USD/CAD

In relation to the Canadian Dollar, the US Dollar made a significant top close to the 1.3220 area. USD/CAD sharply dropped beneath 1.3120 and 1.3000.

The pair even consolidated below the 1.3000 level, the 100 simple moving average (red, 4-hours), and the 200 simple moving average, as shown on the 4-hours chart (green, 4-hours). It further soared below 1.2900 and tried to hold above the 1.2820 support region.       

Over the level of 1.2850, the pair is currently consolidating its losses. The pair is up against a significant resistance area in the 1.2960 region and the 100 simple moving average (red, 4-hours).

A closing above the level of 1.2960 might pave the way for a continuous rise. The area around 1.3020 may serve as the next significant resistance. It is close to the pivotal slide from the 1.3225 swing high to 1.2816 low, which is represented by the 50% Fib retracement level.

The pair even consolidated below the 1.3000 level, the 100 simple moving average (red, 4-hours), and the 200 simple moving average, as shown on the 4-hours chart (green, 4-hours). It further soared below 1.2900 and tried to hold above the 1.2820 support region.

Over the level of 1.2850, the pair is currently consolidating its losses. The pair is up against a significant resistance area in the 1.2960 area and the 100 simple moving average (red, 4-hours).

A closing above the level of 1.2960 might pave the way for a continuous rise. The area around 1.3020 may serve as the next significant resistance. It is close to the pivotal slide from the 1.3225 swing high to 1.2816 low, which is represented by the 50% Fib retracement level.

Furthermore, any additional gains might push the pair closer to the 1.3120 level. The pair may correct downward and plunge under 1.2810 if there is no upside break.

The next significant support level is 1.2800, below which the pair may continue to decline toward 1.2750. Any more losses might push the pair toward the region of 1.2640.

Looking at EUR/USD, the pair is still having trouble staying below the 1.0280 resistance level and continues to be vulnerable to further short-term losses.

Economic News to Trade Today

  • Initial Jobless Claims in the US: 253K expected, up from 251K previously.
  • US GDP Q2 2022 (Preliminary): Forecast 0.4 percent vs. -1.6 percent in Q2 2018.
Author:
Amogo Solomon is a Broker-Dealer/Market Research analyst and writer in ACT Brokers with a background in Computer Science, Data Analytics, and Forex Broker Dealing. He specializes in Forex Dealing, markets Analysis, Currency research, forex fundamental and technical analysis, and Monitoring of Forex trends, Stocks, Equities, Cryptos, and Commodities. He possesses strong technical and analytical skills and is well known for his entertaining and informative analysis of the global economy, fiat currency, commodities, Stocks, Indexes, Futures, and Options markets. He held a Bachelor's degree in Computer Science and Nanodegree in Programming for Data Science Enterprise.

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