22 August USDCAD Technical Forecast: Pair rebounds from 1.30 handle


The USDCAD pair reversed a dip to the 1.30 neighborhood, or two-week lows, and spiked around 30-35 pips post-Canadian retail sales data, albeit quickly retreated few pips thereafter. What is next? Find out from the latest 22 August USDCAD Technical Forecast.

22 August, OctaFX The pair kept losing ground on Wednesday and was being weighed down by a fresh wave of US Dollar selling pressure, triggered by the latest US political headlines.

The ongoing slide in the US Treasury bond yields made it worst for the USD bulls and exerted some additional downward pressure on the major.

USDCAD Fundamental Highlights

The bearish pressure receded after the latest Canadian monthly retail sales data fell short of market expectations and came in to show a contraction of 0.2 in June. The weaker reading came after last month’s solid growth of 2.2% and prompted some short-covering move. 

The up-move, however, lacked any strong follow-through and remained capped below a previous strong support break-point, now turned resistance, near the 1.3050-55 region amid the ongoing upsurge in crude oil prices, which tend to underpin demand for the commodity-linked currency – Loonie.

It would now be interesting to see if the pair is able to find any fresh buying interest or continues with its near-term bearish slide as the focus now shifts to today’s key event risk – the release of FOMC meeting minutes, later during the US trading session.

22 August USDCAD Technical Forecast

On a sustained move beyond the 1.3050-55 immediate hurdle, the pair is likely to aim towards reclaiming the 1.3100 handle before eventually darting towards 1.3160-70 supply zone.

On the flip side, weakness below the 1.30 handle is likely to find support near 100-day SMA, around the 1.2985-80 region, which if broken should pave the way for an extension of the recent downfall.

Disclaimer

This article about 22 August USDCAD Technical Forecast was provided by OctaFX. It should substitute for professional marketing consulting. Forex margin trading involves substantial risks. Forex margin trading exposes participants to risks including, but not limited to, changes in political conditions, economic factors, and other factors. All of which may substantially affect the price or availability of one or more foreign currencies.

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