Market Update: USDCAD buyers remain held at resistance
Hi traders, today we’re taking a look at the USDCAD as the price starts to reconfirm resistance. Could this put pressure on the newly developing uptrend?
Looking at the daily USDCAD chart below we can see sellers putting up two tests to the current buyer momentum. They have held buyers twice now at 1.2830 and set up a new LH and failed high after yesterday’s fade. Above that level, we see another resistance point around the 1.2915 area. These two points look to be putting in a cap over the current trend.
Buyers had held a decent run and continued to maintain the new trend after breaking out last June. Pricewise buyers need to break through the 1.2830 area to get the trend back on track. However, this could be no easy feat as we can see plenty of pushback from sellers all the way up to 1.2950. A deciding factor for the USD could be Thursday’s Fed meeting. If details come out in favour of the USD that could be all buyers need to break through resistance. On the other hand, if they’re disappointed we could see a new push lower that may retest the current trend.
The FOMC is due at 4:00 am and the Press conference is due at 4:30 am Thursday morning AEST.