Published on Mar 27, 2023

Daily Analysis For USD/CAD 27-03-2023

USD/CAD Analysis

Economic Events and Scenario for USD/CAD

Economic Events : -

GMT	Event	Impact	Currency
2:30	(China) Industrial Profits (YTD) YoY	Low	CNY
6:00	(Finland) Consumer Confidence	Low	EUR
6:00	(Finland) Business Confidence	Low	EUR
6:00	(Japan) Leading Economic Index	Low	JPY
6:00	(Japan) Coincident Index	Low	JPY
9:00	(Germany) Ifo Current Conditions	Low	EUR
9:00	(Germany) Ifo Business Climate	High	EUR
9:00	(Germany) Ifo Expectations	Low	EUR
9:00	(Euro Area) Loans to Companies YoY	Low	EUR
9:00	(Euro Area) M3 Money Supply YoY	Low	EUR
9:00	(Euro Area) Loans to Households YoY	Low	EUR
9:00	(Australia) Myfxbook AUDUSD Sentiment	Medium	AUD
9:00	(Switzerland) Myfxbook USDCHF Sentiment	Medium	CHF
9:00	(Japan) Myfxbook USDJPY Sentiment	Medium	JPY
9:00	(European Union) Myfxbook EURUSD Sentiment	Medium	EUR
9:00	(United Kingdom) Myfxbook GBPUSD Sentiment	Medium	GBP
9:00	(Canada) Myfxbook USDCAD Sentiment	Medium	CAD
9:00	(New Zealand) Myfxbook NZDUSD Sentiment	Medium	NZD
11:00	(United Kingdom) CBI Distributive Trades	Medium	GBP
11:00	(France) Jobseekers Total	Low	EUR
11:00	(France) Unemployment Benefit Claims	Medium	EUR
11:00	(Greece) Total Credit YoY	Low	EUR
14:00	(France) 3-Month BTF Auction	Low	EUR
14:00	(France) 12-Month BTF Auction	Low	EUR
14:00	(France) 6-Month BTF Auction	Low	EUR
15:30	(United States) Dallas Fed Manufacturing Index	Medium	USD
15:40	(Euro Area) ECB Elderson Speech	Medium	EUR
16:00	(Euro Area) ECB Schnabel Speech	Medium	EUR
16:30	(United States) 3-Month Bill Auction	Low	USD
16:30	(United States) 6-Month Bill Auction	Low	USD
18:00	(United States) 2-Year Note Auction	Low	USD
18:00	(United Kingdom) BoE Gov Bailey Speech	Medium	GBP
22:00	(United States) Fed Jefferson Speech	Medium	USD

Today's Scenario: - During the Asian trading session, the USD/CAD pair has reached a new low for the day at 1.3725. This decline in the value of the US Dollar against the Canadian Dollar is supported by a lackluster performance of the US Dollar Index (DXY) and an increase in optimism for the Bank of Canada (BoC) to resume its policy tightening measures after the release of strong Canadian Retail Sales data.

Buy Scenario: - The USD/CAD pair has corrected lower to approach the demand zone between 1.3737-1.3746, but the overall upside bias for the Canadian dollar remains strong as it is still trading above a downward-sloping trendline from the March 10 high at 1.3862. Additionally, the pair is still above the 50-period Exponential Moving Average at 1.3727, suggesting a short-term bullish bias.

Although the Relative Strength Index (RSI) (14) has dropped below 60.00, it could find initial support around 40.00.

If the pair manages to recover above the March 14 high at 1.3773, it could potentially rally towards the March 09 high at 1.3835 and the key resistance level of 1.3900. Till we do not advise to buy USD/CAD.

Sell Scenario: - If the USD/CAD pair fails to hold above the demand zone at 1.3737-1.3746, it could potentially break down below the March 14 low at 1.3652. This could trigger a bearish move towards the March 07 low at 1.3600, followed by the March 03 low at 1.3555. Traders should closely monitor the price action and watch for any signs of a trend reversal, such as a break below key support levels or a shift in momentum indicators like the Relative Strength Index (RSI).Till we do not advise to sell USD/CAD.

Support and Resistance Level: -