The Canadian greenback is the strongest performing main forex on the day thus far
USD/CAD is hovering across the lows for the day as value settles at ranges final seen on 6 February with help round 1.3180 serving to to maintain the pair afloat in the interim. The near-term bias within the pair is favouring sellers for the time being and with value falling beneath the 100-day MA (purple line) in buying and selling yesterday, sellers are persevering with the momentum to the draw back in buying and selling at present.
The important thing degree that sellers will likely be aiming for would be the 200-day MA (blue line) @ 1.3152. A agency break beneath that can see momentum within the pair flip extra bearish. That stated, the upwards trendline since February final yr continues to be holding up in order that may even be a key technical degree that sellers should breach earlier than seeing a stable run to the draw back.
With threat sentiment not offering a lot clear path on the day, the subsequent key threat occasion for the pair will come from the greenback facet of the equation through the January FOMC assembly minutes launch. Look in direction of that for extra clues on which path the pair will undertake within the near-term.
For now, sellers are prevailing however there’s a want for additional conviction to make a run decrease right here. Assist is seen @ 1.3180 adopted by 1.3160-65 after which the 200-day MA. In the meantime, patrons must construct again in direction of a transfer above the 100-day MA @ 1.3251 to retest resistance round 1.3300 and 1.3320-40.