Buck Extends Losses as Loonie Positive aspects

March 28, 2023

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USD/CAD Outlook:

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USD/CAD has fallen beneath the tight vary of assist and resistance, that shaped round 1.365 earlier at the moment. After breaking beneath the prior stage of assist, the rebound in oil costs stalled, muting the Canadian Greenback.

Though the takeover deal between First Residents Financial institution and SVB briefly calmed fears over the soundness of the banking sector, regional and smaller banks stay a priority. This comes at a time when regulatory officers from the Federal Reserve, Federal Insurance coverage Company (FDIC) and Treasury Division are pressured to testify earlier than the congressional committee.

Whereas US authorities and the FDIC have dedicated to offering liquidity to bigger monetary establishments, there may be nonetheless uncertainty round how different lenders have been impacted by latest occasions.

Really helpful by Tammy Da Costa

Buying and selling Foreign exchange Information: The Technique

As market individuals proceed to cost in developments within the elementary backdrop, the US Greenback has did not regain confidence in opposition to its main counterparts.

USD/CAD Technical Evaluation

On the time of writing, USD/CAD is buying and selling beneath one other key stage of technical significance, holding round 1.365. With a zone of confluency forming between 1.3600 and 1.370, the slender vary stays crucial for the brief and medium-term transfer.

At DailyFX, we now have a devoted assist and resistance web page exhibiting areas of assist and resistance for fashionable markets

After a steep drop from the March excessive, the 1.3700 psychological stage (coinciding with the 20-day MA) offered momentary assist earlier than stepping in as resistance, which presently stays intact.

USD/CAD Each day Chart

Chart ready by Tammy Da Costa utilizing TradingView

If bears handle to achieve traction and break assist, a retest of 1.3600 is feasible, with the following stage of Fibonacci assist (78.6% retracement of the 2011 – 2016 transfer) coming into play at 1.356.