The USDCAD pair now seems to have entered a bullish consolidation phase and was seen oscillating in a narrow trading range. Moreover, what important US releases might help investors determine the near-term trajectory? Find out in today’s 21 May USDCAD Technical Analysis.
21 May, GKFX – The Canadian Dollar is trading on a firm note vs. its American peer at the beginning of the week, taking USD/CAD to the lower bound of the range near 1.2860.
USD/CAD focused on Fedspeak
After two consecutive daily advances, the pair is leaving behind the area of Friday’s tops beyond 1.2900 the figure and returning to the 1.2865/60 band today, or daily lows.
The down move in spot is echoing the correction lower in the buck, which recorded earlier fresh YTD peaks above the key 94.00 milestone when tracked by the US Dollar Index.
In addition, yields of the US 10-year note are stabilizing in the lower end of the daily range between 3.06% and 3.08%, coming down from last week’s multi-year tops around 3.13%.
Later in the session, Atlanta Fed R.Bostic (voter, centrist), Philadelphia Fed P.Harker (non voter, hawkish) and Minneapolis Fed N.Kashkari (non voter, dovish) are all due to speak ahead of Wednesday’s key FOMC minutes.
21 May USDCAD Technical Analysis
As of writing the index is losing 0.18% at 1.2875 and a break below 1.2845 (21-day sma) would open the door to 1.2727 (low May 11) and finally 1.2722 (38.2% Fibo of the 2017 drop). On the upside, the initial hurdle aligns at 1.2926 (high May 15) seconded by 1.2999 (high May 8) and then 1.3126 (2018 high Mar.19).
This article 21 May USDCAD Technical Analysis was written by analysts at GKFX. The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice.
If such information is acted upon by you, then this should be solely at your discretion, and GKFX will not be held accountable in any way.