USD/CAD Extend Gains Amid Upbeat U.S Data
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USD/CAD Extend Gains Amid Upbeat U.S Data

Published: 16 April 2024,02:03

Published: 16 April 2024,02:03

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USD/CAD extend gains amid upbeat US data trading opportunities 16 April 2024

Fundamental Analysis

* Diving Loonie: The Canadian Loonie continue to lose ground against the dollar as US Dollar has resumed its upward trend, propelled by retail consumption data surpassing expectations which affirming the robust momentum of the US economy. The US Census Bureau revealed that March’s Retail Sales grew by 0.7% growth YoY, which is more than double the anticipated yearly growth rate of 0.3%. The data reinforces the expectation that the Federal Reserve (Fed) will maintain higher interest rates for an extended period. This is bolstering the US Dollar, which is further buoyed by the volatile circumstances in the Middle East. On top of that, Oil prices, which represent Canada’s primary export, are retreating from the peak levels seen last week, placing additional strain on the Canadian Dollar.

Technical Analysis

* Technical Breakout: USDCAD was traded higher following recent breakout above the previous resistance level 1.3780. MACD which illustrate bullish momentum signal suggest the pair to further extend its gains.

* Resistance and Targets: If the bullish momentum persists, there’s a strong likelihood that the price will potentially head towards 1.38350. Conversely, a breach below the level 1.37800 would indicate the potential reversal for the pair.

Understand how technical analysis can help you in this trading opportunity.

Potential Risks

Moving forward, markets are closely monitoring economic data from the US to assess the Federal Reserve’s trajectory. Additionally, investors are keeping an eye on oil price movements, which could generate short-term trading prospects for the USD/CAD pair.

Know how to manage trading risks with risk management strategies.

Monitoring

Stay updated on U.S and Canada data, BoC related updates and any shifts in the US Dollar’s strength by following PU Prime’s market insights and daily financial news.

Grab the trading opportunity and dive into the action risk-free with a free demo account. It is the perfect way to hone your skills and explore the exciting world of trading!

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Disclaimer: Trading derivatives involves high risks, and market conditions can change rapidly. The content is for informational purposes only and should not be considered as financial advice. Traders should conduct their own research and consider risk management strategies.

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