The USDCAD pair faded an early European session spike and quickly retreated around 50-pips from the 1.3100 neighborhood. What technical levels should traders watch? Find out in today’s 31 July USDCAD Technical Outlook.
31 July, GKFX – A modest retracement in crude oil prices exerted some downward pressure on the commodity-linked currency – Loonie and was seen assisting the pair to build on overnight modest rebound from the vicinity of 100-day SMA support, sub-1.30 level, or 1-1/2 month lows.
The positive momentum quickly fizzled out ahead of the 1.3100 handle amid the prevalent weaker tone surrounding the US Dollar, which was further weighed down by the ongoing slide in the US Treasury bond yields.
Investors look forward to Canadian GDP/US data
Currently placed at the lower end of its daily trading range, below mid-1.3000s, investors now look forward to the economic releases, with the key focus on monthly Canadian GDP growth figures, for some fresh impetus.
From the US, the release of personal income/spending data, core PCE price index, followed by Chicago PMI and the Conference Board’s consumer confidence index, might also produce some meaningful trading opportunities.
31 July USDCAD Technical Outlook
Any subsequent retracement is likely to find support near the 1.30 handle and is closely followed by 100-day SMA support near the 1.2985 region, which if broken now seems to pave the way for an extension of the pair’s downward trajectory.
On the upside, the 1.3080 region now seems to act as an immediate hurdle, above which the pair is likely to surpass the 1.3100 handle and aim towards testing its next resistance near the 1.3135-40 region en-route the 1.3200 round figure mark.
This article 31 July USDCAD Technical Outlook 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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