THE USD/CAD is looking to position itself above the 1. 2520 resistance lately, while the US dollar is losing the opposite floor to a wide basket of currencies.
The US dollar index is marking the nearest point at 92. 40. If this verification passes, the US dollar index will move to the next at 92. 15, which will be bearish for the USD/CAD.
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Today, currency investors focused on the Bank of Canada’s resolution on interest rates. The Bank left the interest rate unchanged at 0. 25% but adjusted its quantitative easing program to a rate of $2 billion consistent with the week.
Meanwhile, statements prepared through Jerome Powell for his congressional testimony indicated that the Fed was not worried about inflation despite the recent report showing the inflation rate rose 5. 4% year-on-year in June.
Powell’s comments pressured the US currency, but USD/CAD was controlled to gain a bumpy momentum as WTI oil fell below the $74 level, which is bearish for commodity-related currencies, adding the Canadian dollar.
The USD/CAD has recently checked to return above the resistance at 1. 2500 and will settle above the next resistance point at 1. 2520. If this attempt is successful, it will head to the next resistance which is at yesterday’s high of 1. 2540.
If the USD opposite the CAD manages to place above the resistance at 1. 2540, it will move towards the resistance at 1. 2560. A move above this point will prepare the resistance control at 1. 2590.
On the other hand, the past resistance point at 1. 2500 will serve as the first point for the USD compared to the CAD. If the USD instead of the CAD manages to return below this point, it will move to the next at 1. 2480.
A successful verification of this point will push the USD towards the CAD towards 1. 2450 This point has already been checked several times in recent trading sessions and has shown its strength, so the USD opposed to the CAD will want more catalysts to settle below 1. 2450.
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