FX.co ★ USD/CAD

USDCAD Forecast: USD/CAD bears have returned to the table after a two-day hiatus due to broad US dollar weakness and an increase in oil prices early on Thursday. As a result, the Loonie pair hits a new intraday low of 1.41222 during the lethargic Asian session. Despite this, the US Dollar Index (DXY) is still down for the sixth consecutive day as bears remain close to the lows from the previous day, which were set in early February, at 102.30. In doing so, dovish doubts about the US central bank's (Fed) next move, as well as concerns about the US banking sector and the US dollar's value relative to six other currencies, need a better reception of the Fed's 25 basis point (bps) rate increase. The market was prepared for the Fed's announcement of a 0.25% rate increase. However, the policy hawks were rebuffed by claims that "some more policy firming may be needed" as opposed to prior declarations that "ongoing hikes in the target range will be appropriate. " The USD/CAD pair reverses from a two-week-old resistance level as Thursday's European session draws near, recording the first daily decline in three. The Loonie pair does this by puncturing a critical support confluence between a horizontal line extending from early January, the initial resistance, and the 21-day Exponential Moving Average (EMA). The USD/CAD negative forecast that it would break the 1.40842 level, which would unleash a near 100-pip southward run, highlights the monthly low of 1.39722, which is also the 50% Fibonacci retracement of the pair's February-March gain. Recovery gains need the Loonie pair's ability to provide a daily close above the resistance noted above the line, which is now at 1.41502. Before USD/CAD bulls reach the 1.42822 monthly high, the 1.41772–1.41790 area might act as another check to the north.