The US dollar has initially fallen against the Canadian dollar to kick off the week on Monday but turned around to show signs of life again with that being said I think you've got a situation where traders are going to continue to be very uh cautious but I also think that short-term pullbacks probably offer buying opportunities that people are willing to get involved at the 1.39 level below should end up being support, just as the 1.40 level above should offer resistance. I think at this point, we're trying to determine whether or not we can actually take out the 1.40 level. Breaking above there opens up a move all the way to 1.4250, and I think that eventually happens. Quite frankly, the economic data in Canada is horrible. They actually lost jobs in August, and at this point, despite the fact that the Federal Reserve is likely to cut rates, let's be honest here.
USD/CAD refers to the US Dollar/Canadian Dollar currency pair and it shows how many CAD can be purchased for one USD....
Informally, the CAD is known as the Loonie, because of the loon bird which appears on one side of the Canadian $1 coin. USD/CAD is one of the most liquid, commonly traded major currency pairs, which means narrow spreads for traders. There are a variety of factors influencing the value of USD/CAD. One of the most significant of these is that the CAD is a commodity currency, meaning that its value is closely correlated to the value of a heavily traded commodity. The Canadian economy is strongly reliant on crude oil exports, so the currency will be impacted by oil prices and export capacity. In addition, the value of both currencies in the USD/CAD pair are influenced by the interest rate differential between the American Federal Reserve and the Bank of Canada. For example, an intervention by the Fed that strengthened the US dollar would weaken the Canadian dollar since more CAD would be required to buy a single USD dollar. It is also important to note that the Canadian dollar is one of the five major reserve currencies, meaning that many central banks and other leading financial institutions hold large amounts of CAD to use for international transactions as a way to minimize exposure to exchange rate risks.
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The US dollar has been slightly negative during the early hours on Monday, as we continue to see a lot of volatility in the Forex world. That being said, it’s likely that we are looking at this through the prism of a major barrier above trying to be broken, in the form of the 1.40 level. The 1.40 level is a massive barrier to overcome, and I think at this point in time, if we were to break above the 1.40 level, it’s likely that the US dollar would really take off.
The US dollar initially rallied against the Canadian dollar on Tuesday but then gave back gains to show there is still a bit of hesitation at the moment, as there are a lot of questions about the Federal Reserve and what its plans are for interest rates going forward. Furthermore, there are some questions as to where things go with the US government and a potential shutdown looming.
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USD/CAD pulled back on Friday after profit-taking, but a breakout above 1.39, rising EMAs, and Canada’s economic weakness keep the bullish outlook intact.
The US dollar rallied against the Canadian dollar during the early hours on Monday, as we continue to dance around the 1.38 level. The 1.38 level is an area that I think a lot of people will be paying close attention to, and as we have seen multiple times over the last couple of months, it looks like it’s a bit of a magnet for price. Ultimately, this is a market that I think given enough time, we have to make a bigger decision but as things stand right now, there are a lot of questions about the North American economy, so does make a certain amount of sense that the USD/CAD pair continues to be sideways.
USD/CAD consolidates around 1.38 as traders eye a breakout toward 1.39–1.40, with 1.36 holding as key support.
USD/CAD steadies around 1.38 with bullish bias, as Canadian weakness from job losses and trade tensions contrasts with US dollar resilience.
USD/CAD remains rangebound below the 200-day EMA, with support at 1.3750 and resistance near 1.40 as Fed policy and Canada’s weak outlook drive sentiment.
USD/CAD is consolidating near 1.38, with divergent jobs data and a sluggish oil market favoring a bullish breakout above the 200-day EMA toward 1.4025.
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USD/CAD trades near 1.38 as dollar strength weighs on the Loonie, with traders eyeing key EMA levels and upcoming jobs data for the next decisive move.
The US dollar bounced against the Canadian dollar on Labor Day, with technical support holding as Canada’s weak exports and reliance on US growth weighed on the loonie.
USD/CAD slipped to test 1.3750 support, but with the interest rate differential favoring the greenback, a breakout above 1.38 could trigger further upside momentum.
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USD/CAD rallied above the 200-Day EMA, with buy-the-dip sentiment aiming for 1.40 while Powell’s Jackson Hole speech could spark volatility.
The US dollar remains choppy against the Canadian dollar near 1.38, with weak Canadian fundamentals and key EMA levels guiding short-term direction.