USD/CAD Consolidates In Absence of Catalysts
USD/CAD - H4
Last month was its first negative one since May and despite a solid start in November, the pair is range-bound this week and lacks conviction, as investors appear to wait for the US CPI inflation data on Wednesday.
Competing forces seem to be in play, with the USD pressured, but cautious sentiment and subdued oil prices keep the pair constrained. There is a recent short-term negative tilt below EMA200, which is also reflected in the RSI and could lead to a test of 1.2400. The November lows are probably distant at this stage though (1.2360-51), while the downside seems well protected from there on.
On the other hand, the RSI bounces off the 50 line and USD/CAD stays above the 23.6% Fibonacci of the mid-September/mid-October decline. This can carry the recovery towards the 38.2% Fibonacci (1.2520-6), although the 200Day EMA (at around 1.2570) will require more effort.
From the economic calendar, we expect US Producer Price Index shortly, followed by speeches from the heads of the Fed and the BoE, while US CPI inflation is due tomorrow.
Past Performance: Past Performance is not an indicator of future results.
Nikos Tzabouras
Senior Financial Editorial Writer
Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. With extensive experience in market analysis and a strong foundation in international relations, he brings a unique perspective to financial markets. Nikos emphasizes not only technical analysis but also on fundamentals and the growing influence of geopolitics on financial trends.
As a Senior Financial Editorial Writer, he delivers comprehensive and forward-looking insights across a wide range of asset classes, including equities, commodities, and currencies. His work explores how macroeconomic events, political developments, and global policies impact market dynamics, providing readers with a deeper understanding of both short-term movements and long-term trends.
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