Yahoo Finance USD/CAD Daily Fundamental Forecast – July 25, 2017
The USDCAD pair continues to weaken over the last 24 hours and despite the fact that the dollar did try to make some sort of a recovery against certain other currencies, it has not been able to do anything against the CAD and continues to get slaughtered. The pair is clearly oversold but those in the markets will tell you that any instrument can continue to be oversold for as long as it wants to without any correction happening.
USDCAD Continues to be Under the Pump
This is what seems to be happening in the case of this pair as well as there has not been a tangible bounce in this pair for quite some time now and it has always been one way traffic for the past few weeks. The data from Canada has also supported such a move and yesterday it was the turn of the wholesale sales data to come in stronger than expected and support the CAD even more. Also, we saw the oil prices also firm up ahead of the OPEC meeting and a combination of these events drove the prices below the 1.25 region.
This was only for a brief while though, and the USDCAD pair has since recovered and it trades above 1.25 as of this writing. It continues to look weak and if it break below 1.25 again, then the next target should be 1.2460. But we believe that this price region should see a lot of buying support and that is the reason why we are expecting to see a small bounce from this region. With the FOMC minutes to be released tomorrow, the dollar bulls would be looking towards it for some support.
Looking ahead to the rest of the day, we do not have any major news from Canada but we have the consumer confidence data from the US. We can safely expect some more consolidation and ranging in the USDCAD pair for today on either side of 1.25.
This article was originally posted on FX Empire
