Chart Of The Day: Fed Chair Powell's Testimony, BOC and FOMC Minutes can question USDCAD's recovery
Not only the all-important bi-annual testimony of the Federal Reserve Chairman Jerome Powell but monetary policy meeting by the Bank of Canada (BOC) and minutes of the latest Federal Reserve meeting also flashes lights on USDCAD from all the corners.
On the fundamental side, Powell's testimony and FOMC minutes will be closely observed to seek clues of how would the start of monetary policy easing at the US central bank will look like considering the latest improvement in the US NFP. Elsewhere, the BOC isn't expected to alter its monetary policy but might not refrain from praising latest upbeat data from the Canadian economy, which in turn will be USDCAD negative.
Technically, 21-day EMA level of 1.3180 will be the first upside barrier to challenge the pair's recovery off 61.8% Fibonacci retracement, a break of which can push buyers towards 50% Fibonacci retracement level of 1.3220 and June month low around 1.3240. However, the 1.3260/65 resistance-confluence comprising 200-day EMA and 5-week old descending trend-line will be the key to question the Bulls. Alternatively, 1.3070, 1.3040 and 1.3000 will be the key supports to watch during the pair's declines, which if fail to stop bears, 1.2970 and 1.2880 could grab the spotlight.