CAD – USD/CAD continues its upward trend

Since mid-June, the USD/CAD exchange rate has formed three bottoms at similar levels: 1.3539 on June 16, 1.3556 on July 3, and 1.3575 on July 23. The recent breakout above the June 23 high of 1.3798 and the July 17 high of 1.3774 suggests the start of a new, extended rally. Based on the cumulative decline since February, a 38.2% rebound would reach 1.4020, while a 50% and 61.8% rebound would reach 1.4167 and 1.4315, respectively. Furthermore, the 250-day moving average of 1.3970 and the 1.40 level remain key support levels. The support is expected at 1.3750 and the 25-day moving average of 1.3660, with the 1.35 level providing significant support.

Forecast range:
Resistance: 1.3970 - 1.4000/20 - 1.4167 - 1.4315
Support: 1.3750 - 1.3660 - 1.3500 - 1.3418

Focus:
Friday
Canada's Q2 GDP (8:30 PM)

Any questions? contact our professional analysis team