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USDCAD Market Update

2/27/2023 11:11 AM

During the Asian session, the USD/CAD pair is developing the “bullish” momentum and is testing 1.3616 for a breakout supported by macroeconomic statistics.

On Friday, investors drew attention to the positive dynamics in the income and expenses of US citizens in January, as well as a significant increase in new home sales at the beginning of the year, which strengthened the confidence of trading analysts that the US Federal Reserve will continue to raise interest rates, which could reach their peak at 5.35% closer to July. At the moment, the indicator is around 4.75%, and during the March meeting, it may increase by 25.0 basis points. The focus of US investors on Monday will be statistics on the dynamics of orders for durable goods in January: experts expect a correction of the value by 4.0% after rising by 5.6% last month.

On Tuesday, Canada will report on economic growth rates for December and the fourth quarter of 2022: according to forecasts, gross domestic product (GDP) will slow down from 2.9% to 1.5% YoY and by 0.2% QoQ after growth by 0.7% for the last reporting period.

On the daily chart, Bollinger Bands are steadily growing: the price range is expanding, letting the “bulls” renew local highs. The MACD indicator is growing, keeping a relatively strong buy signal (the histogram is above the signal line). Stochastic has reversed at its highs and is declining, signaling in favor of the development of a corrective decline in the nearest time intervals.

Resistance levels: 1.3650, 1.3700, 1.3750, 1.3800. | Support levels: 1.3600, 1.3550, 1.3500, 1.3450.

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