21 Aug 2013
USD/CAD building a head of steam below layers of resistance
FXstreet.com (Barcelona) - Recent DXY weakness has been a burden for the USD/CAD. However, if the FOMC follows through with planned tapering in the coming days / weeks / months, the path of least resistance for USD/CAD should be higher.
USD/CAD traders will be monitoring Fed and BOC thoughts / words for clues
Wednesday’s release of the most recent FOMC Policy Meeting minutes will be the first real clue this week as to whether the Federal Reserve is really planning to commence their announced tapering program. The minutes will give traders and analysts a look back on what the Fed was thinking last week. Then, on Thursday and Friday, the world will be paying close attention to the news and quotes emanating from the Jackson Hole Symposium to see what the Fed Heads may be thinking in real-time. Also, later in the week, we will see various economic data points that may play a role in shaping the FOMC’s and the BOC’s policies going forward.
Technical outlook for USD/CAD
Technicians note that although there are several layers of resistance or USD/CAD to conquer, it appears like the cross may be setting up for a nice bull run. The resistance will come into play at previous pivots / peaks at 1.0441 and 1.0608. Support for USD/CAD comes in at the 8/16 low of 1.0292.
USD/CAD traders will be monitoring Fed and BOC thoughts / words for clues
Wednesday’s release of the most recent FOMC Policy Meeting minutes will be the first real clue this week as to whether the Federal Reserve is really planning to commence their announced tapering program. The minutes will give traders and analysts a look back on what the Fed was thinking last week. Then, on Thursday and Friday, the world will be paying close attention to the news and quotes emanating from the Jackson Hole Symposium to see what the Fed Heads may be thinking in real-time. Also, later in the week, we will see various economic data points that may play a role in shaping the FOMC’s and the BOC’s policies going forward.
Technical outlook for USD/CAD
Technicians note that although there are several layers of resistance or USD/CAD to conquer, it appears like the cross may be setting up for a nice bull run. The resistance will come into play at previous pivots / peaks at 1.0441 and 1.0608. Support for USD/CAD comes in at the 8/16 low of 1.0292.