The USD/CAD currency pair has displayed an intriguing pattern on the hourly scale. Market enthusiasts closely observe a Rising Channel chart pattern, where each retracement is perceived as a lucrative buying opportunity. As traders and investors delve into the analysis, the Loonie's recent correction towards the immediate support near 1.3510, originating from the August 8 peak, has garnered attention. Moreover, the supportive role of the upward-sloping 50-period Exponential Moving Average (EMA) at 1.3504 has bolstered the confidence of US Dollar bulls.
Understanding Fed's July Meeting Insights Significant insights emerged from the Federal Reserve's July meeting minutes amid the evolving forex landscape. These revelations shed light on the perspective of Federal Reserve members regarding potential inflation risks. The consensus among these financial leaders suggests that upward risks linked to inflation persist. This contemplation hints at the possibility of forthcoming tightening measures to curb inflation. However, it's crucial to note that they equally emphasized their commitment to pragmatically incorporate upcoming data into their decision-making process while discussing this. Notably, prominent figures within various regional Federal Reserve branches, including Bostic, Goolsbee, Harker, and Barkin, have expressed a collective sentiment that the time has arrived to pause the ongoing streak of rate hikes.
Technical Analysis and Future Prospects A pivotal juncture emerges. The trajectory of USD/CAD largely hinges on whether it can decisively breach the intraday peak at 1.3555. Such a breakthrough would propel this significant currency pair toward the June high at 1.3588, which commands attention. Beyond that lies the aspiration to conquer the May high at 1.3655, signaling a remarkable achievement for the US Dollar. Conversely, a downward plunge below the barrier at the July 18 high 1.3288 can trigger a bearish trajectory. If this transpires, the asset could gravitate towards the July 27 low of around 1.3167. Further down the path of decline, the July 14 low, marginally below 1.3140, stands as an additional support level.
