Canadian Dollar Technical Outlook: USD/CAD 2% Rally Puts Yearly Highs Back in Play
A sharp reversal from critical support has revived USD/CAD bulls, with a major resistance test now in focus that could determine the fate of the recovery.
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Canadian Dollar Technical Outlook: USD/CAD Multi-Timeframe Analysis
USD/CAD technical analysis shows the pair rallying nearly 2.4% off a major pivot zone as Federal Reserve hike bets lift the U.S. dollar. Michael Boutros, StoneX Media Senior Market Analyst, breaks down the USD/CAD rebound across the weekly, daily and near-term charts. The rally now meets a dense cluster of Fibonacci retracement resistance and weekly closing levels that has capped the advance in the near term. Markets price a Fed rate hike in December as all but certain and an 88% chance of a second hike by March, keeping U.S. dollar strength in focus against the Canadian dollar. The pitchfork structure on the chart separates a routine pullback from a deeper washout and marks the break that would challenge the broader uptrend. U.S. producer price index data, jobless claims and a lineup of Fed speakers add event risk for the U.S. dollar and the Canadian dollar alike.
This content was created by an affiliate of FOREX.com and represents the views and opinions of the author/speakers, not the views and opinions of Forex.com, StoneX Group Inc., or its subsidiaries. The content has not been independently reviewed by FOREX.com.
Key USD/CAD Economic Data Releases
Economic Calendar - latest economic developments and upcoming event risk.
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--- Written by Michael Boutros, Senior Technical Strategist
Follow Michael on X @MBForex
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