USD/CAD currency pair from both technical and fundamental perspectives:
Technical Analysis:
- USD/CAD has been steadily channeling higher on US Dollar strength.
- Key technical points:
- 1.3575is the current price.
- Moving Averages (MA):
- MA5: 1.3574 (Buy)
- MA10: 1.3574 (Buy)
- MA20: 1.3554 (Buy)
- MA50: 1.3547 (Buy)
- MA100: 1.3564 (Buy)
- MA200: 1.3561 (Buy)
- Pivot Points:
- Resistance 1: 1.3575
- Resistance 2: 1.3578
- Resistance 3: 1.3581
- Support 1: 1.3569
- Support 2: 1.3572
- Support 3: 1.3575
Fundamental Analysis:
- USD/CAD has faced several factors:
- US Dollar Strength: The safe-haven appeal of the US Dollar and hawkish Fed rhetoric have allowed USD to strengthen against major counterparts, including the Canadian Dollar.
- Commodity Supply Constraints: Despite fiscal stimulus and low interest rates, commodity supply constraints have weighed on energy prices, driving inflation higher.
- Monetary Tightening Measures: Both the Fed and the Bank of Canada are implementing rate hikes, contributing to price action in Q.
- Challenges Ahead: Ensuring the withdrawal of QE does not disrupt financial stability remains a challenging task for central banks..