USD/CAD Price Analysis: Trades Inside Wednesday’s Range Ahead Of Fed Powell’s Speech

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USD/CAD oscillates inside Wednesday’s range as investors await a speech from Fed Powell.

Jerome Powell might emphasize keeping interest rates higher for a longer period.

USD/CAD continues to move higher in a Rising Channel chart pattern.

The USD/CAD pair trades back and forth in a narrow range near the crucial resistance of 1.3800 in the European session. The  asset struggles for a direction as investors await the speech from Federal Reserve (Fed) Chair Jerome Powell.The market participants hope that  would emphasize keeping interest rates higher for a longer period to keep pressure elevated on consumer inflation. Powell may quote rate cuts ‘unreasonable’ in the near term as current price pressures over 2% required inflation would be a hard nut to crack.Meanwhile, the US  (DXY) trades directionless near 105.50 despite deepening slowdown fears. The oil prices discover intermediate support after a sharp correction while more downside remains favored as Middle East conflicts are seen contained between Israel and Palestine only. It is worth noting that Canada is the leading exporter of oil to the United States and higher oil prices impact the Canadian Dollar.USD/CAD continues to move higher in a Rising Channel  pattern in which each pullback is considered as a buying opportunity by the market participants. The 50-day Exponential Moving Average (EMA) at 1.3660 continues to provide support to the US Dollar bulls. Horizontal resistance is plotted from March 10 high at 1.3682.The Relative Strength Index (RSI) (14) struggles to shift into the bullish range of 60.00-80.00. If the RSI (14) manages to do so, a bullish momentum would get triggered.Going forward, a decisive break above October 27 high at 1.3880 would expose the round-level resistance at 1.3900, followed by 13 October 2022 high at 1.3978.In an alternate scenario, a breakdown below October 24 low around 1.3660 would drag the asset to the round-level support of 1.3600. A further breakdown could expose the asset to October 7 low at 1.3570.
 USD/CAD daily chart(Click on image to enlarge)

USD/CAD

OVERVIEW Today last price 1.379 Today Daily Change -0.0006 Today Daily Change % -0.04 Today daily open 1.3796 TRENDS Daily SMA20 1.3745 Daily SMA50 1.3641 Daily SMA100 1.3486 Daily SMA200 1.3497 LEVELS Previous Daily High 1.3814 Previous Daily Low 1.3755 Previous Weekly High 1.3899 Previous Weekly Low 1.3654 Previous Monthly High 1.3892 Previous Monthly Low 1.3562 Daily Fibonacci 38.2% 1.3792 Daily Fibonacci 61.8% 1.3778 Daily Pivot Point S1 1.3762 Daily Pivot Point S2 1.3729 Daily Pivot Point S3 1.3703 Daily Pivot Point R1 1.3822 Daily Pivot Point R2 1.3848 Daily Pivot Point R3 1.3882

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