Technical Analysis: USDCAD

USDCAD reached a three-month high

On Wednesday, USDCAD climbed for the sixth straight trading day and reached 1.3815, which marked the highest level since the 17^th April.

The Bank of Canada cut the interest rate by 25 basis points

On Wednesday, the Bank of Canada reduced the interest rate from 4.75% to 4.5%. It cut the interest rate for the second straight time, meeting expectations. The Bank of Canada Governor Tiff Macklem expected that the inflation will further slow down. If the inflation continues slowing down, the Bank of Canada will reduce the interest rate further, he added.

Canada new home price index dropped in June

Canada New Home Price Index, y/y (June) fell from 0% to -0.2%, and Canada New Home Price Index, m/m (June) declined from 0.2% to -0.2%, according to the data from the Statistics Canada.

The bullish market trend prevailed in the short term

the Chart of the Day

On the chart of the day, USDCAD continued climbing. The bullish market trend prevailed in the short term. In terms of technical indicators, MACD went upwards after golden cross occurred, showing USDCAD will rise further. Investors should focus on whether USDCAD will break through the resistance at 1.385. It will jump further with potential resistance at 1.390 if it breaks above 1.385.

4-hour chart

On the 4-hour chart, USDCAD was prone to fluctuation and climbed. The bullish market trend prevailed. In terms of technical indicators, KDJ witnessed golden cross at a high level, showing the market trend is bullish. Investors should focus on whether USDCAD will break through the support at 1.377. It will rise further if it retreats but is stable above 1.377.

Key resistance: 1.385, 1.390

Key support: 1.377, 1.373

Generally speaking, as the Bank of Canada cut the interest rate, and Canada economic data became weaker, USDCAD is more likely to rise further in the short term. Investors should focus on US economic data during the day.