This week will be relatively quiet in Canada, as the United States releases its preliminary GDP, unemployment claims, and Powell speaks on Friday. USDCAD has bottomed out and fell a little over 1% in the last two trading days after setting fresh highs. The USD news this week will most likely influence where the pair moves this week.

Based on recent unemployment claims data, I believe the US will either outperform forecasts by a little margin again this week, or the number will be lower than last week. We may see the pair continuing to fall lower early in the week, but if it reaches a certain level, I believe it has a decent possibility of rebounding to the upside. When Powell speaks later this week, as well as the Jackson Hole Symposium on Thursday, expect more volatility.

The 1D chart of the USDCAD remains positive after reaching fresh highs at the 1.2950 level. For the second time, price has broken out of its consolidation zone, which might potentially function as a new level of support. I believe there is some value in playing the long side of this pair if pricing decides to return to this levels i.e. 1.2600-1.2500. Fibo levels are also endorsing my calculations and we may see a good support @ 1.2590 that is 61.8% and near 50% level i.e. 1.2480. MACD is also showing bullish moves in coming days. EMA of 20,50 & 200 is not yet align but at given support levels it may endorse our stance.

So, stay long from given levels to earn good profit in coming days.

“Trading is an art of decision making”

USD/CAD

Aug 24 2021

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