USD/CAD analysis on April 1, 2024
During Monday's Asian trading, USD/CAD is holding near the 1.3529 mark. The pair is influenced by macroeconomic data from Canada.
Thus, in January, Canada's Gross Domestic Product (GDP) grew by 0.6% mainly due to the recovery of the service sector (+0.7%). The public sector, which includes services and healthcare, showed growth of 1.9%, the manufacturing sector by 0.9%. Here, positive dynamics has been achieved due to the expansion of production of transport equipment by 3.0%. However, the mining industry showed negative dynamics: oil and gas production decreased by 4.4%, and quarrying — by 1.9%.
The US dollar index is at 104.20. In February, the basic price index for personal consumption in the United States slowed from 0.5% to 0.3% on a monthly basis and from 2.9% to 2.8% on an annual basis. This did not have a significant impact on the quotes of the American currency
The Canadian dollar may continue to rise if the US dollar maintains a sideways movement (flat).
On the daily chart, USD/CAD is approaching the support of the ascending channel with dynamic boundaries of 1.3670–1.3480.
Technical indicators indicate that buy signals are weakening significantly. The EMA of the "alligator" begins to narrow and adjust downwards, and the awesome oscillator indicator forms corrective bars, although it still remains above the zero level.
We will open short positions after the pair is fixed below the 1.3500 level. The nearest target is at 1.3420. We place the stop loss at 1.3550.
Long positions are recommended only after the price is fixed above 1.3560. The target becomes 1.3640. We will set the stop loss at 1.3510.