USD/CAD extends losses, approaching 1.3500 ahead of Powell – Crypto News – Crypto News
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Faces rejection near 1.3000 mark, bullish potential intact Faces rejection near 1.3000 mark, bullish potential intact

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USD/CAD extends losses, approaching 1.3500 ahead of Powell – Crypto News

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  • The US Dollar drops further as US PCE confirms the disinflationary trend.
  • All eyes today are on Fed Powell’s conference.
  • Soft Canadian data and lower oil prices are likely to weigh on the CAD.

The US Dollar was rejected at the 1.3625 resistance area on Thursday and resumed its broader downtrend against its Canadian counterpart reaching two-month lows near 1.3500 so far.

Lower inflation hints at end of the Fed’s hiking cycle 

US PCE Prices Index data released on Thursday endorsed the lower inflation and softer macroeconomic scenario seen over the last week. This has boosted confidence that the Fed has reached its terminal rate and is acting as a headwind for US Dollar bulls.

Later today, Chairman Powell and other US Fewd officials are hitting the press and their comments will be observed with special interest. Any signal towards a dovish turn on the bank’s forward guidance is likely to increase bearish pressure on the pair.

In Canada November’s employment figures are expected to show that the labour market is softening, which, coupled with the weak GDP data seen on Thursday and the lower oil prices might keep CAD upside attempts limited.

Technical indicators are negative with the RSI still above oversold levels. The next supports are 1.3500 and the September 29 low at 1.3420. On the upside, resistances are at the mentioned 1.3615 and 1.3700.

Technical levels to watch

 

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