- Canada cancels the Digital Services Tax, increasing the feeling of the Loonie after Trump’s criticism.
- The USD/CAD quotes around 1,3620, rejected with the resistance of the triangle and the 21 -day EMA about 1,3700.
- The RSI remains below 50 in 38.60, pointing out a weak upward impulse.
The Canadian dollar (CAD) is gaining land against the US dollar (USD) on Monday after Canada announced that it would cancel its planned tax on digital services to US technology companies. The US President Trump had arrested commercial conversations on Friday, qualifying the tax as “a direct and flagrant attack” to US technology companies in response, Canada rescinded the tax on Sunday night to help resume negotiations. The measure has calmed the commercial tensions and the demand for the Loonie has increased, which weighs on USD/CAD.
The USD/CAD is currently quoting about 1,3620 during the American session. The torque is maintained inside a descending wedge pattern and continues to slide down after facing a strong rejection of the upper border of a descending wedge pattern last week about 1,3700, a key zone that also aligns with the 21 -day exponential (EMA) mobile average, which continues to act as dynamic resistance.
For significant recovery to occur, the torque must break decisively above the 1,3700 region. A daily closure above this resistance would invalidate the current perspective bassist and could attract new buyer interest, pushing to 1,3800–1.3850.
The failure in breaking above the 21 -day EMA has kept sellers in control, and the price is now returning to the lower border of the wedge. A sustained movement below 1,3600 could expose psychological support in 1,3500.
The indicators Momentum continues to bow down. The Relative Force Index (RSI) is maintained below level 50 in 38.60, indicating a weak bullish impulse. Meanwhile, the histogram of convergence/divergence of mobile socks (MACD) has begun to be reduced after a brief recovery in mid -June, indicating that the bullish impulse is weakening. Although the MACD line remains above the signal line, the gap between them is narrowing, and a bassist crossing could be on the horizon if the sales pressure persists.
Until the torque breaks out of the wedge, operators can expect a continuous and erratic movement within the range of 1,3550 –1,3700, with a directional conviction that will probably depend on a clear fundamental trigger or a break in the wedge pattern.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
