USD/CAD is testing a major resistance area ahead of the FOMC Meeting Minutes!
Will we see a breakthrough today?
Or will the pair continue its downward trend?
USD/CAD 15-minute forex Planned by TV
I don’t know if you noticed that USD/CAD has been showing lower highs and lower lows since late June when USD/CAD hit the resistance at 1.3280.
Until the pair reached the psychological level of 1.3200 before finding buyers!
USD/CAD is now trading near 1.3240, which lines up with a descending resistance channel and the 61.8% Fibonacci retracement of the July bearish swing.
It also does not hurt that the current levels of the USD/CAD pair are not too far away from the R1 (1.3250) Pivot Point and the 200 SMA on the 15-minute time frame.
Last but not least, the USD/CAD pair is already up about 30 pips today, which is almost half of Average daily fluctuations for the USD/CAD pair.
Can the USD/CAD pair extend its downtrend?
Long wicks around 1.3250 suggest that there are still enough sellers preventing further gains for the US dollar, at least for now.
Today’s FOMC Meeting Minutes may change the direction of the US Dollar…or not.
Unless we see fresh insight in the Fed statement, the resilience of commodity currencies against the US dollar and the overall risk mood in the FX market is likely to continue today.
USD/CAD could drop towards 1.3230 pivot point line and 100 SMA or even make its way lower to July lows.
what do you think?
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