USD/CAD Feeling Comfortable Above 1.3550, Heading for Resistance at 1.3650

It’s evident that there is a prevailing sense of nervous sentiment in the broader markets. The disruptions caused by financial institutions are generating noise in the markets, resulting in heightened volatility and the testing of new highs in USD/CAD.

Today’s economic calendar has been light, with the exception of the U.S. Existing Home Sales report which kept the trend of softening further. Although this report didn’t have much of an on the USD/CAD exchange rate and buyers remain in charge, attempting to make new recent highs.

The upcoming Jackson Hole Symposium will be a focal point for traders. This event will attract participation from global central bankers, including representatives from the Bank of Canada. On Monday, the USD/CAD came close to reaching important higher levels that were established on the preceding Friday. However, the upward momentum stalled, leading to a subsequent reversal lower. Despite not quite reaching the highs around the 1.35750 mark that were achieved on Friday, yesterday’s trading saw a peak of nearly 1.35730 before the currency pair reversed its direction and declined.

Before bearish traders of the USD/CAD initiate a celebratory response, suggesting that a sustained downward reversal is underway, caution is warranted. It’s crucial to consider the developments that have unfolded over the past five weeks of upward trading.

In essence, the narrative suggests that while recent market activity has displayed elements of nervousness and the potential for shifts, traders should be mindful of the larger context and exercise prudence before drawing firm conclusions about the currency pair’s future direction. And above all, buyers still remain in charge.