USD/CAD: Consolidation After Last Week's Bearish Nosedive| MENAFN.COM

Wednesday, 01 February 2023 11:47 GMT

USD/CAD: Consolidation After Last Week's Bearish Nosedive


(MENAFN- Daily Forex) The usd/cad has taken on a consolidated stance this week and traders should be careful based on the notion sentiment remains fragile in the financial world.

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The USD/CAD is near the 1.33250 mark as of this writing. Value in the USD/CAD has been rather consolidated all week, as highs and lows have essentially been tested twice technically. Traders should look at the five-day chart to visualize this display. Yesterday's economic data from Canada and U.S threw some rather confusing insights into the midst of the financial sphere too.Canadian CPI Date came in Mixed, while U.S Retail Sales Climbed Slightly

Canadian Consumer Price Index statistics came in with mixed results yesterday and U.S Retail Sales beat expectations. The outcome of these two data feeds for analysts to inspect has likely left a remarkably unclear outlook. The USD/CAD retested its weekly high early this morning near the 1.33600 ratio; this mark was last seen on Monday of this week. However, Tuesday's and Wednesday's lows remain close enough to give speculators quite a bit to think about regarding their technical perspectives.

To make things more interesting for traders is the knowledge that last Thursday on the 10th of November the USD/CAD was trading near 1.35700 before it exhibited a large fall in value.
On the 3rd of November the USD/CAD was trading around 1.38100. These two ratios underscore the USD/CAD has not delivered a massive reversal higher, which may indicate selling behavior is still weight the currency pair down.Nervous Outlooks and Limited Data will Rule the Near-Term for the USD/CAD

  • Only limited data will come from the U.S today and tomorrow which could affect trading sentiment regarding an outlook. Financial houses may remain rather nervous in the near term and this may continue to produce consolidated trading as the USD/CAD price range gets tested.
  • Perhaps Existing Homes Sales data from the U.S tomorrow could stir the Forex market enough to cause volatility. The housing statistics are predicted to decline slightly. A decline may continue to allow financial houses to continue selling the USD/CAD.

The fact that highs and lows have been tested a couple of times this week and remain within plain sight may cause tension. Speculators who want to wager on the USD/CAD should use the risk management and not be overly ambitious regarding potential moves. Forex including the USD/CAD appears to be waiting on the next 'big' impetus to hit the marketplace and it may not be delivered. Instead, clarity regarding the U.S federal reserve's next moves may remain rather cloudy. However, if a trader wants to bet on the USD/CAD sold off when it touches technical resistance and aims for support levels as a take-profit location, this may prove effective near-term. Canadian Dollar Short-Term Outlook:

Current resistance : 1.33545

Current Support : 1.33160

High Target: 1.33705

Low Target: 1.32540

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