- The USD/CAD remains stable about 1,3800 after reaching a minimum of six months.
- Trump’s softened posture about Powell and China brings a brief relief to the USD.
- Technical perspectives are still bassist despite the modest intradic earnings.
The USD/CAD pair is modestly lifted up around 1,3800 during the American session on Tuesday, bouncing within a narrow range after trying minimum of six months at the beginning of the week. The Canadian dollar (CAD) remains virtually unchanged in the session while the operators digest recent developments, including new PMI data and a cautious optimism around the decrease in commercial tensions.
The comments of President Trump late on Tuesday caused a brief recovery of the USD after he ruled out to say goodbye to the president of the FED, Jerome Powell, and indicated a possible reduction of tariffs on China. While the comments helped raise the US dollar in early Asian trade, the rebound faded as the markets reassess the persistent risks for the credibility of the Fed and the relations between the US and China. Meanwhile, a preliminary reading of the PMI composed of Global S&P showed a slowdown in the US business activity, with the index falling to 51.2 from 53.5 in March. The PMI of services fell dramatically to 51.4, while manufacturing production rose slightly to 50.7.
On the Canadian side, the CAD remains stable, supported by markets for firm actions and hopes that tariff volatility can decrease. However, the operators expect the Canada retail sales report on Friday to obtain more address.
Technical Analysis of the USD/CAD
Technically, the USD/CAD maintains a bearish structure despite the slight increase today. The pair quotes within a daily range of 1,3798 to 1,3861. The momentum (10) in −0.02398 shows a purchase bias, but the MACD still prints a sales signal, and the indicator of bullish/bassist power remains neutral. The Relative Force Index (RSI) is 33.94, around the territory of overalls. Mobile socks reinforce the downward trend: the 20 -day SMA (1,4060), the 100 -day SMA (1,4274) and the 200 -day SMA (1,4008) all point down, with additional pressure of the EMA of 10 days (1,3903) and the SMA of 10 days (1,3872). The resistance is found in 1,3872, 1,3903 and 1,4008, while immediate support is seen in 1,3813.
Unless the fundamental momentum changes decisively in favor of the USD, it is likely that the USD/CU remains limited below 1,3900 with a bias towards re -testing the support zone of 1,3745–1.3780.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
