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USDCAD moves to new low and tests swing zone between 1.2463 and 1.24724


USDCAD on the hourly chart

the USDCAD

USD/CAD

USD/CAD is the currency pair comprising the United States dollar (symbol $, code USD) and the Canadian dollar of Canada (symbol $, code CAD). The pair’s exchange rate indicates how many Canadian dollars are needed to buy one US dollar. For example, when USD/CAD is trading at 1.3500, that means 1 US dollar equals 1.35 Canadian dollars. The US dollar (USD) is the most traded currency in the world, while the Canadian dollar (CAD) is the seventh most traded currency in the world. The United States and Canada are geographical neighbors and therefore there is a lot of trade between the two countries. Thus, there is often decent volatility and low spreads for USD/CAD, usually between 1 and 3 pips on most forex brokers. Factors Influencing USD/CAD There are a number of important economic or press releases that can affect USD/CAD. This includes, among other things, nonfarm payrolls data for the United States which is released on the first Friday of each month. These measures tell us whether employment is increasing or decreasing, while the Gross Domestic Product (GDP) of Canada or the United States measures the total value of all goods and services produced by the country. Additionally, the USD/CAD is known as a “commodity pair” because Canada has large amounts of natural resources, especially oil, which is its most traded commodity. As a result, it is important for long-term USD/CAD speculators to keep a close eye on crude oil developments due to the strong negative correlation.

USD/CAD is the currency pair comprising the United States dollar (symbol $, code USD) and the Canadian dollar of Canada (symbol $, code CAD). The pair’s exchange rate indicates how many Canadian dollars are needed to buy one US dollar. For example, when USD/CAD is trading at 1.3500, that means 1 US dollar equals 1.35 Canadian dollars. The US dollar (USD) is the most traded currency in the world, while the Canadian dollar (CAD) is the seventh most traded currency in the world. The United States and Canada are geographical neighbors and therefore there is a lot of trade between the two countries. Thus, there is often decent volatility and low spreads for USD/CAD, usually between 1 and 3 pips on most forex brokers. Factors Influencing USD/CAD There are a number of important economic or press releases that can affect USD/CAD. This includes, among other things, nonfarm payrolls data for the United States which is released on the first Friday of each month. These measures tell us whether employment is increasing or decreasing, while the Gross Domestic Product (GDP) of Canada or the United States measures the total value of all goods and services produced by the country. Additionally, the USD/CAD is known as a “commodity pair” because Canada has large amounts of natural resources, especially oil, which is its most traded commodity. As a result, it is important for long-term USD/CAD speculators to keep a close eye on crude oil developments due to the strong negative correlation.
Read this term reached a new low during the North American session. New lows have moved into a swing zone between 1.2463 and 1.24724. The low price has just reached 1.24671. The area held up at first glance.

The downside move was not without its “trials” back up, which helped set the stage lower for the USDCAD pair today.

  • In the early hours of trading, the price moved back above its 200 hourly moving average (green line), but was unable to maintain momentum (see green lines)
  • In the morning session in London, the price moved back above its lower 100 hourly moving average (blue line) but again was unable to maintain bullish momentum in the price which fell back down lower.

Buyers had their shots. They missed.

A move now below the swing zone low (below 1.24631) would take the price to last week’s low extreme, which saw price stagnate at 1.24286. This low would be the next downside target on further downside momentum.

If price can base itself on the swing zone and rally from here, before a move back above the 100 hourly MA, a move above the daily low at 1.24839 would give sellers in the short term a reason to pause in this swing zone. support held and with it, downward momentum.


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