Fundamental Analysis of USDCAD for June 29, 2017

The USD/CAD pair has moved quite impulsively after breaking below the 1.3260 level with a daily close. The pair had a good amount of struggle at this level and a number of false breaks. Finally BOC Governor Poloz hinted at a possible rate hike in the coming days. The Canadian dollar has hit a four-month high after BOC Governor Poloz stated that a rate hike is on the way and the oil price slump of 2014 is currently not bothering the currency much, which results in further gain in the CAD against USD. Today, the US Final GDP report is going to be published, which is expected to be unchanged at 1.2% and the unemployment claims data is also expected to be unchanged at 241K. Any positive high-impact economic report on the US dollar can inject a good amount of volatility in this pair, but in the long run, the Canadian dollar is expected to gain over US dollar.

Now let us look at the technical view. The price is currently at the edge of breaking below the important level of 1.3000. If the price breaks below the 1.3000 with a daily close, then further bearish move towards 1.2830 is expected in this pair. On the other hand, if the price rejects off 1.3000 levels today and closes with a bearish rejection, we will be looking forward to buying with a target towards 1.3260 in the coming days. As of the recent impulsive bearish pressure, a certain amount of corrective price action is expected before the price makes a dive down to the 1.2830 support level.

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The material has been provided by InstaForex Company - www.instaforex.com