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Forex: USD/CAD eyes 1.0180 ahead of FOMC

The Canadian dollar continues to trade in a soft tone against the greenback on Wednesday, pushing the cross to fresh highs in the boundaries of 1.0180 ahead of the FOMC minutes.

After leaving behind the 61.8% Fibo retracement at 1.0135, the research team at TD Securities suggested, “A firm close will support the impression that this market will continue to grind higher towards 1.0250 (76.4% retracement) or higher. We think the rally/consolidation/rally picture of the last 6 months is a bullish structure (bull flag) which puts the low 1.03 zone as the measured move target.

As of writing, the pair is up 0.58% at 1.0168 with the next resistance at the psychological level at 1.0200 ahead of 1.0232 (high Jul.25) and then 1.0251 (high Jul.12).
On the flip side, a breakdown of 1.0101 (high Jan.25) would aim for 1.0055 (low Feb.18) and then 1.0052 (MA10d).

USD on demand ahead of FOMC minutes

The dollar trades firmer across the board as the day has been marked by risk aversion since the European session. The pound tumbled, dragging other currencies with it, after the latest Bank of England minutes showed the MPC voted 6-3 to keep the amount of asset purchases unchanged, against 8-1 expected.
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