Helena Izotova
Today, on May 21st, the US Dollar is retracing against the Canadian Dollar after setting another 4-day high yesterday at 1,0914. The Dollar was strong against its Canadian counterpart until the end of yesterday's American trading session. The sudden rally was caused by weaker-than-expected wholesale figures from Canada.
Today, the currency pair is expected to grow volatile again. This is very likely to happen during today's American trading session since Janet Yellen, which is currently presiding over the Fed, is going to hold a speech after the FOMC publishes its meeting minutes.
It is necessary to mention the fact that such events are usually watched by many market participants and often trigger considerable price moves across many currency pairs.
Masterforex-V Academy conducted comprehensive analysis of the existing situation in the H4 chart of USDCAD to figure out the near-term prospects and likely price moves.
Technically, the currency pair is still in a mid-term / long-term downtrend. Still, the local low located at 1,0849 is above the 1,0812 low set on May 8th. Therefore, the trading experts conclude that a break above the top of the 1,0849-1,0890 price range may push the price higher to hit 1,0925 and other levels above.
At the same time, if the price succeeds in consolidating above 1,0890, this will confirm the mid-term ambitions of the US Dollar against the Canadian Dollar. A break above 1,0925 will definitely give way to 1,0960. The scenario is marked green.
Alternatively, if the price fails to consolidate above 1,0890, the US Dollar may well start losing value against its Canadian counterpart, thereby indicating that the LNG-term downtrend is still underway. In this case, the price may well drop down to 1,0864 ,1,0849 and further down to 1,0812. The scenario is marked red.
Helena Izotova
