CAD – USD/CAD capped by 25-day moving average, may retest 1.40 level in the short term

The USD/CAD pair stalled above 1.40 early last week, holding above the 50-day moving average, but the rebound appeared limited, especially as it failed to break below the 25-day moving average currently at 1.4140. Therefore, if the pair fails to break below this area, it can be considered a technical pullback, with a potential retest of the 1.40 level, or even a further decline. The expected targets are 1.39 and the 100-day moving average at 1.3870, with further targets at 1.38 and 1.3760. Major resistance levels are expected at 1.4250 to 1.43, with the next level at 1.4420 to 1.46.

Estimated Volatility:
Resistance 1.4140* - 1.4250 – 1.4300 – 1.4420 - 1.4600
Support 1.4000** – 1.3900 – 1.3870 – 1.3800 – 1.3760

This Week's News Highlights:
July 31st - Canada's May GDP MoM +0.3%

Focus:
Tuesday - Canada's June Trade Balance (20:30)
 

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