A Tight Forex Week For The USD/CAD - Forex News by FX Leaders
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A Tight Forex Week For The USD/CAD

Posted Thursday, June 18, 2020 by
Shain Vernier • 1 min read

The coming 24-hours are going to be pivotal for the USD/CAD. Several key forex-moving events are scheduled, highlighted by Canadian Retail Sales and a speech from FED Chairman Jerome Powell. In addition, the weekly Baker-Hughes North American Rig Count is slated for release. If the Baker-Hughes report comes in as a surprise, volatility in WTI crude oil may further spike USD/CAD participation.

Thus far, it’s been a quiet week for the Loonie. The four-day range is holding firm at a tight 181 pips ― is this pair poised for a directional move to close the week? Given the news cycle, the USD/CAD has a decent shot of either taking out the high (1.3685) or low (1.3504) of the weekly trading range.

At press time (2:15 PM EST), Bank of Canada (BoC) Deputy Governor Lawrence Schembri has just finished speaking. Schembri gave no hints on further policy moves and placed emphasis on the COVID-19 reopening process. Basically, Schembri’s speech gives forex players a preview of Powell’s Friday engagement. At the moment, the world’s central bankers are in a holding pattern, awaiting more COVID-19 restart data before moving forward.

USD/CAD Brief: Forex Traders Are In No Hurry To Pick A Side

The weekly chart for the USD/CAD is a textbook example of a market in rotation. Rates are consolidating between the 1.3650-1.3500 levels, with a weekly Doji pattern becoming a possibility.

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USD/CAD, Weekly Chart

Here are the key levels to watch until Friday’s close:

  • Resistance(1): Bollinger MP, 1.3671
  • Support(1): 78% Fibonacci Retracement, 1.3327

Overview: For now, a bearish bias continues to be warranted for the USD/CAD. The intermediate-term trend is down, with only the 78% Retracement standing tall as support. Barring a major COVID-19 development or blockbuster statement from Powell, forex rates are likely to chop sideways near the 1.3600 handle for the immediate future.

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About the author

Shain Vernier // US Analyst
Shain Vernier has spent over 7 years in the market as a professional futures, options and forex trader. He holds a B.Sc. in Business Finance from the University of Montana. Shain's career includes stretches with several proprietary trading firms in addition to actively managing his own accounts. Before joining FX Leaders, he worked as a market analyst and financial writer.
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