USDCAD Holds Range Ahead of US Monetary Policy Announcement

FXOpen

The US Dollar (USD) fell moderately against the Canadian Dollar (CAD) on Wednesday, dragging the price of USDCAD to less than 1.2300 ahead of the US Monetary Policy announcement which is expected to incite high volatality accorss the financial markets. The technical bias however still remains bearish due to a Lower Low and Lower High in the recent wave on daily chart.

Technical Analysis

As of this writing, the pair is being traded around 1.2295. A hurdle may be noted near 1.2300, the confluence of pychological number as well as intraday high of yesterday ahead of 1.2315, a major horizontal support turned resistance and then 1.2345, the high of the last major upside rally.

USDCAD Holds Range Ahead of US Monetary Policy Announcement

On the downside, the pair is likley to find a support around 1.2280, the low of the recent downside move ahead of 1.2000, the confluence of pychological number as well as low of the last major dip as demonstrated in the above daily chart. The technical bias will however remain bearish as long as the 1.2345 resistance area is intact.

US Monetary Policy Announcement

On Forex Calendar, the Federal Reserve is due to announce its monetary policy today. According to the average forecast of different economists, the US Central Bank is expected to keep its benchmark interest rate unchanged at 0.25%. The event will include the release of Monetary Policy Statement as well as press conference by the Fed Chief Jannet Yellen. Investors will be eying Yellen’s remarks very closely to gauge the future monetary policy outlook of the Worlds’ largest economy. A hawkish stance by the Fed boss may incite huge bullish momentum in the US Dollar Index.

Trade Idea

Considering the overall technical and fundamental outlook, selling the pair around current levels appears to be a good strategy in short to medium term if we get a bearish pin bar or bearish engiulfing candle on daily chart.

Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Latest from Forex Analysis

Commodities and European currencies Test Key Supports EUR/USD Analysis: The Price Today Has Set Its Minimum Since the Beginning of March Market Analysis: GBP/USD Dives While USD/CAD Gains Bullish Pace The US Currency Corrects After Recent Growth USD/JPY Price Analysis: Consolidation ahead of US News

Latest articles

Indices

Although UK-100 Index Is Near All-time Highs, UK Economy Slips into Recession

Technically, a national economic recession is defined as two consecutive quarters of contraction, and yesterday's Office for National Statistics data confirmed that this has happened — UK GDP fell in the third and fourth quarters of 2023 by 0.1% and

Cryptocurrencies

DOGE Price Increases by 170% in Less Than 2 Months

On February 1, 2024, the DOGE/USD rate was = 0.0783. On the last Friday of March, it rose to 0.2150. The rising price means Dogecoin is now the eighth-largest cryptocurrency in the world by market capitalization, overtaking Cardano

Commodities

Market Analysis: Gold Price and Crude Oil Price Gain Bullish Momentum

Gold price started a steady increase above the $2,200 resistance level. Crude oil prices are gaining bullish momentum and might rise toward $85.00.

Important Takeaways for Gold and Oil Prices Analysis Today

· Gold price started a decent increase

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 65.68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.