USD/CAD Price Forecast: Greenback Extends Losses as Loonie Gains
Hey there!
Just wanted to give you a quick update on USD/CAD. Unfortunately, it looks like it’s fallen
below the tight range of support and resistance that was around 1.365 earlier today. This happened
after the rebound in oil prices stalled, muting the Canadian Dollar.
The good news is that the takeover deal between First Citizens Bank and SVB has temporarily calmed
fears over the stability of the banking sector, but there are still concerns about regional and smaller
banks.
To make matters worse, regulatory officials from the Federal Reserve, FDIC, and Treasury Department
are being forced to testify before a congressional committee. While larger financial institutions will
receive liquidity assistance, we’re still unsure how other lenders have been impacted by recent events.
It seems like the US Dollar hasn’t been doing too well against other major currencies lately, even with all
the changes happening in the market. Currently, USD/CAD is trading below an important level of around
1.365. The range between 1.3600 and 1.370 is super important for short and medium-term moves, so
it’s definitely worth keeping an eye on! After a big drop from the March high, the psychological level of
1.3700 (which also happens to be the 20-day MA) was a temporary source of support before turning
into resistance that’s still holding strong today.
If bears manage to gain traction and brake support, there’s a chance we could see a retest of 1.3600.
And if that happens, the next level of Fibonacci support (which is the 78.6% retracement of the 2011-
2016 move) could come into play at 1.356.
