How has the remarks by the US President Donald Trump, saying that he wants a stronger US Dollar helped the USDCAD pair? Stay informed on the 26 January USDCAD Technical Analysis.
26 January, GKFX – The USD/CAD pair came under some renewed selling pressure on Friday and eroded a major part of previous session’s modest recovery move.
• Trump remarks-led USD rebound loses steam.
• Weaker oil prices limiting further downside.
• Investors await key macro data for fresh impetus.
Overnight remarks by the US President Donald Trump, saying that he wants a stronger US Dollar, helped the pair to rebound over 100-pips from an intraday low near the 1.2280 region, touched in the aftermath of upbeat Canadian core retail sales figures.
The recovery move, however, failed ahead of the 1.2400 handle during the Asian session on Friday and was being capped by some renewed USD weakness, despite positive tone surrounding the US Treasury bond yields.
A further downside, however, remained cushioned amid a follow-through retracement in crude oil prices, which tends to dent demand for the commodity-linked currency – Loonie.
Moreover, investors also seemed to refrain from placing aggressive bets and wait for today’s important macro releases from the US and Canada for some fresh directional impetus. The US economic docket features the release of advance GDP growth figures and durable goods orders, while from Canada, the release of latest consumer inflation figures might now contribute towards determining the pair’s near-term trajectory.
26 January USDCAD Technical Analysis
A follow-through retracement below 1.2345 level is likely to drag the pair back towards the 1.2300 handle, below which the bearish slide could get extended towards its next support near mid-1.2200s.
On the upside, the 1.2390-1.2400 region now seems to have emerged as an immediate hurdle, which if cleared might trigger a short-covering bounce towards the 1.2460-65 region en-route the key 1.25 psychological mark.
This article 26 January 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.
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