USDCAD News Today - The USD/CAD currency pair faced supply during Tuesday’s Asian session, erasing most of the previous night’s gains and pushing prices back toward recent highs.
 
The exchange rate hit new daily lows, dropping below mid-1.3400s within the last hour. This intraday dip can mainly be attributed to position adjustments ahead of Canada’s latest consumer inflation data, set for release at the start of the North American session.
 
Additionally, traders will be monitoring U.S. macroeconomic data, including monthly Retail Sales and the Empire State Manufacturing Index. A slightly weaker trend in the U.S. Dollar (USD) is also adding downward pressure on the USD/CAD pair.
 
Despite this, a strong corrective pullback for the USD is unlikely, given that markets largely expect the Federal Reserve (Fed) to maintain its hawkish stance and higher interest rates for an extended period.
 
Further, concerns about China’s economic downturn are expected to make the dollar a safe haven, which could limit any further declines in USD/CAD, at least temporarily.
 
Meanwhile, declining Crude Oil prices have failed to boost the commodity-linked Loonie or impact the currency pair.
 
Technically, indicators continue to support bullish traders, suggesting that the path of least resistance for spot prices is upward. Therefore, any further declines could still be viewed as buying opportunities.
 
Last week's continuous breakthrough of the 1.3370–1.3380 zone—encompassing the 50% Fibonacci retracement level from May to July's drop and the 100-day Simple Moving Average (SMA)—was seen as a new bullish trigger.
 
Moreover, a close above the key 200-day SMA in the previous session, combined with positive daily chart oscillators, strengthens the short-term bullish outlook for USD/CAD. However, recent resistance near the psychological 1.3500 level suggests caution is warranted before taking further upside positions.
 
A sustained rally beyond the previously mentioned levels could allow the USD/CAD pair to accelerate its momentum toward the next significant resistance at around 1.3555-1.3560, possibly extending upward to the 1.3600 mark.
 
On the downside, any additional intraday declines should find solid support near the former resistance area around 1.3400-1.3390, followed by the 38.2% Fibo level near 1.3315-1.3310, and then the 1.3300 level.
 
A decisive break below the latter could trigger technical selling, making USD/CAD vulnerable to further weakness below mid-1.3250s, possibly testing the 23.6% Fibo level around 1.3225.
 
Read More:
 
This analysis provides fundamental and technical insights from reliable sources and is not investment advice. It is intended solely for informational purposes to enrich reader knowledge. Always perform your independent research on forex information for trading decisions. 
 
Stay up-to-date with the latest forex and crypto news on GIC Indonesia, available on Google News. Trade on GICTrade with an ECN account to enjoy low spreads starting from zero!