Focus on USDCAD today – 24th July, 2024 

In this comprehensive analysis, Ultima Markets brings you an insightful breakdown of the USDCAD for July 24, 2024. 

Key Takeaways 

• Canada’s inflation is down: Canada’s recently announced June CPI annual rate fell to 2.7%. The stable downward price level has increased the probability of the Bank of Canada cutting interest rates today from 82% to 90%. 

• Beware of “Buy the rumor, sell the news”: Since Canada released the June CPI data, the depreciation trend of the Canadian dollar has continued to accelerate. The current exchange rate does not rule out that it has fully priced in the Bank of Canada’s interest rate cut expectations. Therefore, be wary of the false breakthrough of “buy expectations and sell facts” after the interest rate decision is announced. 

Technical Analysis

Daily Chart Insights 

• Stochastic oscillator: The indicator has accelerated upward since it issued a bullish signal in the oversold area on July 12, and the short-term bullish trend is dominant. At present, both the fast and slow line indicators have entered the overbought area, so be wary of the current slowdown in the rate of increase of the exchange rate. 

• Breakthrough resistance: This week, the exchange rate continued to rise only after bearish momentum diminishes. In addition, based on yesterday’s rapid rise to the upper edge of the oscillation range. After a slight correction in the Asian session today, USD/CAD has a high probability of breaking through the current resistance price of 1.37828. 

1-hour Chart Analysis 

• Stochastic oscillator: The indicator is oscillating and entangled in the overbought area, and it is suspected that a short signal is about to be issued, suggesting that the bulls are at a disadvantage in the short term. There is a certain probability that the exchange rate will fall back during the Asian session. 

• Support price: The correction target of the exchange rate during the Asian session is around yesterday’s high of 1.37751. The second target is near the red 33-period moving average. If the exchange rate breaks through two resistance levels in succession, the Canadian dollar will usher in an appreciation trend in the short term. 

Pivot Indicator 

• According to the trading central in Ultima Markets APP, the central price of the day is established at 1.3765, 

• Bullish Scenario: Bullish sentiment prevails above 1.3765, first target 1.3800, second target 1.3820; 

• Bearish Outlook: In a bearish scenario below 1.3765, first target 1.3750, second target 1.3735. 

Conclusion 

To navigate the complex world of trading successfully, it’s imperative to stay informed and make data-driven decisions. Ultima Markets remains dedicated to providing you with valuable insights to empower your financial journey. 

For personalized guidance tailored to your specific financial situation, please do not hesitate to contact Ultima Markets. 

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Stay tuned for more updates and analyses from our team of experts at Ultima Markets. 

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Disclaimer   

Comments, news, research, analysis, price, and all information contained in the article only serve as general information for readers and do not suggest any advice. Ultima Markets has taken reasonable measures to provide up-to-date information, but cannot guarantee accuracy, and may modify without notice. Ultima Markets will not be responsible for any loss incurred due to the application of the information provided.