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USD/CAD stalls near key 61.8% retracement as catalysts approach

The pair rose from 1.3730 to 1.4292, pausing around the 1.4290 61.8% level ahead of Wednesday FOMC minutes and Friday Canada employment data.

Reported · Written up by our desk · Major Pairs

USD/CAD has rallied from 1.3730 to 1.4292 but is stalling near a technically important 61.8% retracement at 1.4290 of the 1.4791 to 1.3480 decline, according to Action Forex. The move also cleared the June high at 1.4247 before losing momentum.

Action Forex said a firm break above 1.4290 to 1.4292 would suggest the prior rally could be extending into a larger medium term advance, with 1.4497 cited as the next projection target and the 1.4791 high potentially returning to focus.

The outlet pointed to two upcoming events that it expects to sit directly in front of the technical test, Wednesday’s FOMC minutes and Friday’s Canadian employment report.

Action Forex added that the rise has been driven more by the US dollar and yield differential than by oil, noting Brent remains around $100 and the Canadian dollar has received little support from elevated crude prices.

Latest closeWTI crude $89.70 ▼1.6%|Brent $100.73 ▼1.5%

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