Techncial Analysis: USDCAD

USDCAD climbed to a two-month high

On Wednesday, USDCAD rose for the 5^th straight trading day. It reached a two-month high of 1.3845 at one point.

The BOC kept the benchmark interest rate unchanged

The BOC(Bank of Canada) announced on the 30^th July that the benchmark interest rate will be kept unchanged at 2.75%, meeting market expectations.

Although US trade policies become clear in recent weeks, it is still difficult to predict US trade policies, the BOC said. Trade negotiations are still uncertain, and tariff threats on new industries persists, it added.

The USDX surged by 1%

On Wednesday, as US economic data was strong, and Powell kept wait-and-see stance, the USDX rose for the fifth straight trading day. It came close to the 100 mark and reached a two-month high at one point.  

The bullish market trend prevailed

the Chart of the Day

On the chart of the day, USDCAD continued rising. The bullish market trend prevailed in the short term. In terms of technical indicators, MACD went upwards after golden cross occurred, and KDJ went upwards after golden cross occurred. Two indicators show USDCAD will rise further. Investors should focus on whether USDCAD will break through the resistance at 1.390. It will climb with potential resistance at 1.400 if it breaks above 1.390.

4-hour chart

On the 4-hour chart, USDCAD was prone to fluctuation and climbed. The bullish market trend prevailed. In terms of technical indicators, RSI went upwards after golden cross occurred, showing that the market trend is bullish. Investors should focus on whether USDCAD will break through the support at 1.379. It will jump if it retreats but is stable above 1.379.

Key resistance: 1.390,1.400

Key support: 1.379,1.373

Generally speaking, the bullish market trend prevailed in the short term. Investors should focus on US economic data during the day.