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29 March 2024 | FXGT.com

USD/CAD Rejects $1.3620 for the Fourth Time During March

  • USDCAD Resistance: The pair has been navigating a broad sideways pattern over the past month, repeatedly testing but not breaking the upper limit of the large trading range at $1.3620. This level has been challenged four times in March, with each attempt failing to secure a breakthrough, leading to the most recent pullback to $1.3550.
  • Bearish Short-term Outlook: The currency pair’s current position below $1.3570, alongside its positioning under key moving averages on short-term charts, suggests a bearish outlook. This indicates that bearish momentum may persist, potentially driving USD/CAD towards a retest of the previous day’s low at $1.3520. A further dip could extend the correction to last week’s low at $1.3460.
  • Conditions for Bullish Momentum: A break above $1.3570 could shift the current momentum, driving USD/CAD towards the upper boundaries of its trading range. Such movement could indicate a short-term bullish reversal, setting the stage for another attempt to test the March peak at $1.3620.
  • WTI Oil Price Lifts CAD: The Canadian Dollar has seen support from climbing Crude oil prices driven by geopolitical tensions and the expectation that OPEC+ may prolong their production cut agreements. This scenario has improved the prospects for inflows into the Canadian currency, bolstering CAD’s strength and capping the upside potential for the USD/CAD pair.
  • Economic Data in Focus: Traders are looking forward to the release of the US Personal Consumption Expenditures (PCE) Price Index during the US trading session, set to provide additional clarity on the Federal Reserve’s interest rate decisions.

USD/CAD 1 Hour Chart

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