The USDCAD pair quickly reversed an Asian session dip to 1.3165 area and is now making a fresh attempt to build on the momentum USDCAD Bulls eye beyond the 1.3200 handle. What is next?
5 September, OctaFX – Growing concerns over a possible escalation in global trade conflict continued benefiting the US Dollar’s safe-haven status and turned out to be one of the key factors behind the pair’s positive momentum for the fifth consecutive session.
Meanwhile, NAFTA uncertainty, coupled with a sharp retracement in crude oil prices further weighed on the commodity-linked currency – Loonie and collaborated to the pair’s uptick to near 1-1/2 month set in the previous session.
BoC monetary policy decision
The uptick, however, seemed lacking any strong follow-through as investors now seem to refrain from placing any aggressive bets ahead of today’s key event risk – the latest BoC monetary policy update, due to be announced later during the early North-American session.
This coupled with Friday’s keenly watched US monthly jobs report, popularly known as NFP, will play an important role in determining the pair’s next leg of directional move.
USDCAD Bulls eye beyond the 1.3200 handle
Looking at the technical picture, the pair on Tuesday finally confirmed a bullish break through an important confluence hurdle, comprising of 50-day SMA and two-month-old descending trend-channel resistance.
A follow-through buying interest beyond the 1.3200 handle would further reinforce the bullish breakout and pave the way for an extension of the ongoing upward trajectory in the near-term.
The 1.3265-70 region, followed by the 1.3300 round figure mark might provide some intermediate resistance on the way up to the yearly high level of 1.3386 in the next couple of weeks.
This article about USDCAD Bulls eye beyond the 1.3200 handle 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.