Photo by Michelle Spollen on Unsplash

The Canadian Dollar (CAD) caught another breather on Tuesday, gaining ground against the weakening US Dollar (USD) and extending into its third straight day of firm gains. The Loonie is up around 1.25% against the Greenback from last week’s lows, pushing the USD/CAD pair down to the 1.3600 handle.

Canadian economic data remains strictly mid- to low-tier this week, keeping the Loonie at the mercy of headlines that largely focus on trade with the United States (US). Canadian Prime Minister Mark Carney reiterated Canada’s stance of cautious willingness to engage in trade talks with the Trump administration, but warned that Canada will continue to support its industries and seek additional trade deals with other countries.

Daily digest market movers: Canadian Dollar rises on continued USD weakness

• Despite fresh gains on Greenback selling pressure, the CAD remains trapped in near-term chart churn.
• USD/CAD has traded stubbornly within a choppy range since late May.
• Canadian PM Mark Carney reiterates Canada’s openness to US trade talks as long as they represent Canadian interests, a very high bar for the Trump administration to hit.
• US Dollar losses accelerated on Tuesday as President Trump continues his campaign against his own Federal Reserve Chair pick.
• Trump lacks the legal authority to terminate Fed Chair Jerome Powell’s position ahead of schedule, but legality has done little to stop Donald Trump’s moves during his second term.

Canadian Dollar price forecast

With the Canadian Dollar trending back into recent highs against the lagging US Dollar, the USD/CAD is poised to price in a messy triple bottom. The Greenback has been under intense selling pressure since Trump’s inauguration, and even the most ardent USD sellers need to be concerned about running too far, too fast into oversold territory.

USD/CAD daily candlesticks will run into stiff technical support from the 1.3580 to 1.3550 region. On the high side, a fresh bullish pivot will have to crack through the 50-day Exponential Moving Average (EMA) near 1.3740 to find sustained momentum.

USD/CAD daily chart

(Click on image to enlarge)

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