USD/CAD Fundamental Analysis March 17, 2017

The CAD had impulsive pressure over the USD after the FOMC decided to raise the federal funds rate from 0.75% to 0.75%-1.00%. Following a widely expected Fed’s move, the rate hike decision made an huge impact on the currency market but affected the USD in a negative way. Currently, the USD/CAD market is trading sideways after the impulsive bearish move the day before yesterday. Today, we have G20 Meeting which is going to be underway for the whole global day. Therefore, the USD/CAD pair may show some volatility along the way. Moreover, today Canada will present Manufacturing Sales report. Previously, the figure was at 2.3% but no forecast has been made about this report. Any positive or negative outcome will affect the CAD in an impulsive way today. On the other hand, today on the USD front, the economic calendar contains Preliminary UoM Consumer Sentiment which previously was at 96.3 and 97.1 is expected today. On the whole, the currency market is going to be quite volatile today. Amid some important first-tier reports from the US and Canada, the USD/CAD pair is facing a choppy trade today.

Now let us look at the technical view. After the break below the channel support and dynamic support of 20 EMA the pair is expected to retest the nearest resistance of 1.3370. If we see any bullish rejection from the level, we will consider selling with a target towards 1.3215. On the other hand, daily close above the resistance 1.3370 will cancel the bearish bias.

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

Source:: USD/CAD Fundamental Analysis March 17, 2017