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US Dollar Forecast: USD/CAD Pushes Above September Opening Range

Article By: ,  Strategist

US Dollar Forecast: USD/CAD

USD/CAD pushed above the opening range for September to register a fresh monthly high (1.3623), but the exchange rate may consolidate over the remainder of week as it snaps the recent series of higher highs and lows.

US Dollar Forecast: USD/CAD Pushes Above September Opening Range

Keep in mind, USD/CAD bounced back ahead of the August low (1.3441) following the kneejerk reaction to the US Non-Farm Payrolls (NFP) report, and the exchange rate may attempt to further retrace the decline from the yearly high (1.3947) as the Relative Strength Index (RSI) continues to recover from oversold territory.

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With that said, USD/CAD may extend the advance from the September low (1.3467) amid the break above the monthly opening range, but the exchange rate may face range bound conditions should it track the flattening slope in the 50-Day SMA (1.3665).

USD/CAD Price Chart – Daily

Chart Prepared by David Song, Strategist; USD/CAD Price on TradingView

  • The recent advance in USD/CAD seems to have stalled as it no longer carves a bullish price series, and failure to hold above the weekly low (1.3547) may push the exchange rate back towards 1.3520 (23.6% Fibonacci extension).
  • A breach below the monthly low (1.3467) brings the August low (1.3441) back on the radar but USD/CAD may stage a further advance as it retraces the pullback from the monthly high (1.3623).
  • Need a break/close above 1.3630 (38.2% Fibonacci retracement) to open up 1.3700 (38.2% Fibonacci extension), with the next area of interest coming in around 1.3810 (161.8% Fibonacci extension) to 1.3850 (50% Fibonacci extension).

Additional Market Outlooks

EUR/USD Fails to Hold in September Opening Range Ahead of ECB

US Dollar Forecast: GBP/USD Susceptible to Bull-Flag Formation

Australia Dollar Forecast: AUD/USD Reverses Ahead of January High

Gold Price Outlook Supported by Positive Slope in 50-Day SMA

--- Written by David Song, Strategist

Follow on Twitter at @DavidJSong

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