In the Asian session, the USD / CAD pair is trading at 1.2104 within an uptrend channel on 4-hour charts, above the 21 SMA and above the zone of range of 3/8 murray, showing a bullish bias.
Investors are awaiting this week's key event for the USD / CAD pair where the Bank of Canada is scheduled to announce its latest monetary policy decision on Wednesday at 10:00 am.
The interest rate is expected to remain unchanged at 0.25%, and the market will focus on the Bank's comments. If these comments are more forceful than expected, it could give the pair downward strength, otherwise we could see the continuation of the uptrend seen on the chart.
At the close of the American session yesterday, the pair consolidated above the 1.21 level, which suggests that there could be a bullish move for the next few hours or after the key event, traders will be trading cautiously until before the event.
On the other hand, the US dollar index (USDX) remains above the psychological level of 90.00. If the US dollar manages to move away and continue its upward movement, it could weaken the USD / CAD pair, and there could be an upward momentum until the resistance zone of the 200 EMA, located at 1.2164.
The technical reading of the eagle indicator is showing a bullish signal, only if the USD / CAD pair remains above the key level of 1.2070, there the uptrend channel converges and the 3/8 of murray, there could be a technical rebound in this area, and be able to buy with targets at 1.2164 and 1.2207.
Our recommendation is to buy above the 21 SMA and above the 3/8 murray, targeting 1.2164 (200 EMA) and the 4/8 murray at 1.2207.
Support and Resistance Levels for June 09 – 10, 2021
Resistance (3) 1.2171
Resistance (2) 1.2144
Resistance (1) 1.2124
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Support (1) 1.2078
Support (2) 1.2050
Support (3) 1.2031
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Trading tip for USD/CAD for June 09 - 10, 2021
Buy above 1.2085, (SMA 21 and 3/8 of Murray), with take profit at 1.2164 and 1.2207 (4/8), stop loss below 1.2050.