The Canadian Dollar (CAD) has remained relatively stable in trading, with the USD trading slightly higher overall. Shaun Osborne, chief FX strategist at Scotiabank, notes that the CAD, along with the Australian Dollar (AUD), has been a marginal outperformer. Despite this, the USD has struggled to extend above the 1.37 level. Osborne suggests that the lack of market-moving news for the CAD and stable variables may help limit pressure on the currency in the short term, keeping it below his fair value estimate of 1.3597.
The USD/CAD pair has found support around the 1.36 area, with the 200-day MA providing a strong base for the recent trading range. However, the USD has faced resistance around the 1.37 level, with further resistance at 1.3705/10 and 1.3750/55. Trend signals are currently mixed and weak, indicating a likelihood of more flat, sideways trading in the near future. Osborne predicts that more range trading between 1.36 and 1.37 is likely for the CAD in the short term.
Overall, the CAD remains relatively stable against the USD, with little significant movement expected in the near future. The lack of market-moving news and stable variables surrounding the CAD may help maintain its current trading range. The USD/CAD pair is supported around 1.36, but faces resistance around 1.37 and beyond. Trend signals indicate a weak outlook for the pair, suggesting more sideways trading in the coming days.
Despite the USD trading higher overall, the CAD has remained resilient and is trading slightly below Osborne’s fair value estimate. The 200-day MA has provided support for the USD/CAD pair around 1.36, while resistance levels at 1.37 and above may cap further gains. With trend signals showing weakness and mixed signals, the outlook for the pair remains flat in the short term. More range trading between 1.36 and 1.37 is likely in the coming days for the CAD.
In conclusion, the CAD has been holding steady in trading against the USD, remaining slightly below its fair value estimate. The USD/CAD pair is supported around 1.36 by the 200-day MA, but faces resistance at higher levels. With trend signals indicating weakness and mixed signals, the pair is likely to continue trading within a narrow range in the near future. Despite the USD trading higher overall, the CAD has shown resilience and may continue to do so in the short term. Range trading between 1.36 and 1.37 is expected for the CAD, with limited pressure on the currency for now.
