USD/CAD is testing a key resistance zone forward of the FOMC assembly minutes!

Will we see a breakout immediately?

Or will the pair prolong its downtrend?

USD/CAD 15-min Foreign exchange Chart by TV

I don’t know in case you seen however USD/CAD has been displaying decrease highs and decrease lows since late June when USD/CAD hit resistance on the 1.3280 space.

The pair even hit the 1.3200 psychological stage earlier than discovering patrons!

USD/CAD is now buying and selling close to 1.3240, which traces up with a descending channel resistance AND the 61.8% Fibonacci retracement of July’s downswing.

It additionally doesn’t damage that USD/CAD’s present ranges will not be too removed from the R1 (1.3250) Pivot Level stage and the 200 SMA on the 15-minute time-frame.

Final however not least, USD/CAD has already risen by round 30 pips immediately, which is round half of USD/CAD’s every day common volatility.

Can USD/CAD prolong its downtrend?

The lengthy wicks round 1.3250 recommend that there are nonetheless sufficient sellers stopping additional positive factors for the U.S. greenback, a minimum of for now.

At this time’s FOMC assembly minutes report could change the tides for the Dollar…or not.

Except we see recent perception within the Fed’s launch, then it’s extra probably that the resilience of commodity-related currencies in opposition to USD and the general risk-taking temper within the FX market would persist immediately.

USD/CAD might dip in direction of the 1.3230 Pivot Level line and 100 SMA and even make its manner again right down to its July lows.

What do you assume?

This content material is strictly for informational functions solely and doesn’t represent as funding recommendation. Buying and selling any monetary market includes danger. Please learn our Threat Disclosure to be sure to perceive the dangers concerned.