Published on Apr 10, 2023

Daily Analysis For USD/CAD 10-04-2023

USD/CAD Analysis

Economic Events and Scenario for USD/CAD

Economic Events : -

GMT	Event	Impact	Currency
00:50	(Japan) Current Account	Medium	JPY
01:00	(Australia) Easter Monday	None	AUD
01:00	(Austria) Easter Monday	None	EUR
01:00	(Belgium) Easter Monday	None	EUR
01:00	(Euro Area) Easter Monday	None	EUR
01:00	(Finland) Easter Monday	None	EUR
01:00	(France) Easter Monday	None	EUR
01:00	(Germany) Easter Monday	None	EUR
01:00	(Ireland) Easter Monday	None	EUR
01:00	(Italy) Easter Monday	None	EUR
01:00	(Latvia) Easter Monday	None	EUR
01:00	(Lithuania) Easter Monday	None	EUR
01:00	(Luxembourg) Easter Monday	None	EUR
01:00	(Malta) Easter Monday	None	EUR
01:00	(Netherlands) Easter Monday	None	EUR
01:00	(New Zealand) Easter Monday	None	NZD
01:00	(Switzerland) Easter Monday	None	CHF
01:00	(United Kingdom) Easter Monday	None	GBP
06:00	(Estonia) Inflation Rate MoM	Low	EUR
06:00	(Estonia) Inflation Rate YoY	Low	EUR
06:00	(Estonia) Balance of Trade	Low	EUR
06:00	(Estonia) CPI	Low	EUR
06:00	(Japan) Consumer Confidence	High	JPY
07:00	(Japan) Eco Watchers Survey Current	Low	JPY
07:00	(Japan) Eco Watchers Survey Outlook	Low	JPY
09:00	(Australia) Myfxbook AUDUSD Sentiment	Medium	AUD
09:00	(Switzerland) Myfxbook USDCHF Sentiment	Medium	CHF
09:00	(Japan) Myfxbook USDJPY Sentiment	Medium	JPY
09:00	(European Union) Myfxbook EURUSD Sentiment	Medium	EUR
09:00	(United Kingdom) Myfxbook GBPUSD Sentiment	Medium	GBP
09:00	(Canada) Myfxbook USDCAD Sentiment	Medium	CAD
09:00	(New Zealand) Myfxbook NZDUSD Sentiment	Medium	NZD
10:00	(Greece) Inflation Rate MoM	Low	EUR
10:00	(Greece) Industrial Production YoY	Low	EUR
10:00	(Greece) Harmonised Inflation Rate YoY	Low	EUR
10:00	(Greece) Inflation Rate YoY	Low	EUR
10:00	(Malta) Balance of Trade	Low	EUR
10:30	(Cyprus) Balance of Trade	Low	EUR
11:00	(Portugal) Balance of Trade	Low	EUR
15:00	(United States) Wholesale Inventories MoM	Low	USD
16:00	(United States) Consumer Inflation Expectations	Low	USD
16:30	(United States) 3-Month Bill Auction	Low	USD
16:30	(United States) 6-Month Bill Auction	Low	USD
21:15	(United States) Fed Williams Speech	Medium	USD

Today's Scenario: - The USD/CAD pair is currently trading around 1.3510, with a slight increase from the intraday low, after breaking a four-day uptrend in Asia. Although the pair bounced back from the 50-bar Simple Moving Average (SMA), it remains within a bear flag chart pattern that has been in place for the past two weeks.

Buy Scenario: - The USD/CAD currency pair has risen from its intraday low near 1.3510, after ending a four-day uptrend earlier in the Asian session. It is currently bouncing off the 50-bar Simple Moving Average (SMA) but remains within a two-week-old bear flag chart formation.

Despite the bearish chart pattern, the MACD signals and the RSI (14), which is not overbought, suggest the possibility of further upside for the pair towards the bearish chart pattern's top line of around 1.3545.

However, for the USD/CAD bulls to gain more momentum, the pair needs to stay above 1.3545 and trade successfully above the 200-SMA resistance level at 1.3635.

In such a scenario, the USD/CAD bulls could target the late September highs of around 1.3800 before reaching the previous monthly peak of 1.3861. Till we do not advise to buy USD/CAD.

Sell Scenario: - On the downside, a break below the 50-SMA, currently around 1.3500, could bring in the sellers. However, to retake control, the sellers must conquer the key support level of 1.3485, which is the lower line of the stated bear flag.

If the pair falls below this level, the latest bottom around 1.3400 could act as an intermediate halt before the theoretical fall targets 1.3100.

Traders should note that the lows marked in February, close to 1.3260, may act as an additional barrier to the south. Till we do not advise to sell USD/CAD.

Support and Resistance Level: -