- USD / CAD hits a new weekly high at 1.2763.
- Market sentiment remains pessimistic, with the S&P 500 trading below the 50 DMA.
- The WTI lost 1.27% in the session, dragging the Canadian dollar with it.
- Federal elections in Canada will be held on September 20.
The USD / CAD it is gaining traction on the session, up 0.45%, trading at 1.2739 at the time of writing. Market sentiment remains pessimistic as the US stock indices post losses caused by today’s data on Friday. The S&P 500 has broken below the 50-day moving average.
Additionally, oil prices that strongly correlate with the Canadian dollar are falling for the second day in a row, with the WTI trading at $ 72.12, shedding 0.55%.
US Consumer Confidence Worse Than Expected
On the US economic agenda, the University of Michigan consumer sentiment rose to 71.0, even worse than the 72.2 expected by economists. The USD / CAD reaction to that headline was muted, while investors’ attention was focused on the Federal Open Market Committee meeting next week on September 21-22.
Meanwhile, in Canada, the federal elections to be held on September 20 could generate some USD / CAD turmoil as the market awaits its results.
USD / CAD Price Forecast: Technical Outlook
On the daily chart, USD / CAD is trading at 1.2728. Despite the pair reaching a weekly high, it unsuccessfully tested the September 8 high of 1.2762, falling almost 40 pips later. The first resistance to the upside would be the aforementioned high at 1.2762. In the event of a sustained breakout of that level, the next supply area would be 1.2800.
On the other hand, the failure at 1.2762 could pave the way for further losses. The first support would be 1.2700. In the event of a breakout of that level, the USD / CAD could drop to 1.2600.
The Relative Strength Index is at 58.34, pointing higher, supporting the uptrend, but macroeconomic developments should keep bulls cautious.
Technical levels
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
