The USD/CAD has displayed the ability to traverse slightly lower and is challenging support levels last seen in the middle of January as a large day of risks await.
(Click on image to enlarge) is near 1.34300 which is close to support last tested in a sustained manner in the middle of January. The price of the USD/CAD is certainly above the lows it touched in late December near the 1.31800 vicinity, but the currency pair has been able to demonstrate downwards ability since testing a high around the 1.35435 mark on the 17th of January. Yet, trading in the USD/CAD has been choppy, because after a reversal lower from the high on the 17th, last Thursday saw another challenge upwards. The past two weeks of trading in the USD/CAD should be a warning regarding today’s potential price range. USD/CAD Lower Momentum Holding but Likely in QuestionSince coming within sight of the mid-January highs again last Thursday the downwards momentum in the USD/CAD has been noteworthy, but it might be suspicious. The USD has turned in a rather strong buying surge in January, and the USD/CAD is certainly above its late December lows. are going to listen to the Federal Reserve’s pronouncements later today attentively and react. But the question is after the storm of volatile trading that will be seen later today, if the price range of the USD/CAD will have taken up a new value realm?Traders will need to be cautious as approaches today, the price range of the USD/CAD is going to grow wider and solid risk management will be needed by those who choose to participate in the currency pair. The Fed is unlikely to announce any substantial changes to its outlook today which means that volatility will create fast price velocity, but could bring the USD/CAD back to its known price range after the dust settles. Standing on the Sidelines a Safer Bet for Nervous Traders
Canadian Dollar Short Term Outlook:
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