USDCAD Signals: Bullish Breakout Above 1.3000

USDCAD – technical overview

Above 1.3000 signals an end to a period of longer-term bearish consolidation and suggests the market is in the process of carving out a more significant longer-term base. Next key resistance now comes in up into the 1.4000 area. Setbacks should be very well supported down into the 1.3000 area.

• R2 1.3847 – 16 April/2024 high – Strong
  
• R1 1.3792 – 11 June high – Medium
  
• S1 1.3662 – 7 June low – Medium
  
• S2 1.3586 – 10 May low – Strong
  

USDCAD – fundamental overview

The Canadian Dollar is coming out of a rare session in which it outperformed its peer group. Canada housing data was behind the relative strength after May housing starts accelerated at the fastest pace since September 2023. Key standouts on Tuesday’s calendar come from Eurozone and German sentiment reads, Eurozone CPI, US retail sales, US industrial production, and Fed speak.

Exclusive FX research from LMAX Group Market Strategist, Joel Kruger