FX.co ★ Tote | USD/CAD

USDCAD 15-Minutes Analysis: An increase in USD demand results in a significant intraday bounce in USD/CAD. The currency and US bond yields, however, may be negatively impacted by growing predictions that the Federal Reserve may reduce its aggressive stance. A more moderate rate increase of 25 basis points in February is now being factored into the markets. Following the release of US consumer inflation statistics on Thursday, a number of Fed officials made statements that decreased betting. The USD/CAD pair's potential increase may be constrained if the USD bulls are deterred from placing large bets. Additionally, the USD/CAD exchange rate is stabilized, and the commodity-linked loonie is supported by rising crude oil prices. Therefore, it will be prudent to wait until there is significant follow-through buying before deciding that spot prices have reached a near-term bottom before investing for future gains. Now, traders are seeking guidance from the US Preliminary Michigan Consumer Sentiment Index. This information, along with shifts in the price of oil, could allow traders to take advantage of fleeting opportunities. The selling justified pushing the price below the 1.41011 barrier by citing the USD/CAD decline below 1.41011. The Relative Strength Index (RSI), which is currently in the negative zone, shows that sellers are in charge. The Rate of Change (RoC) for Friday's session shows that sellers are gaining momentum, even though it wasn't enough to keep the pair in the green. The first level of support for the USD/CAD will be the daily low of 1.39977. A violation of the latter will expose the 200-day EMA at 1.39176 and 1.38822. But 1.41011 would be the USD/CAD's initial resistance. Before the 20-day EMA and 1.42011 level converge, the bear's next line of defense would be the subsequent 1.41211.