Key Highlights
- USD/CAD started a decent increase above the 1.3500 resistance.
- A key bullish trend line is forming with support at 1.3550 on the 4-hour chart.
- GBP/USD remained in a bullish zone above the 1.3150 level.
- The Fed reduced interest rates from 5.50% to 5.00%.
USD/CAD Technical Analysis
The US Dollar found support near the 1.3440 zone against the Canadian Dollar. USD/USD started a decent increase above the 1.3500 resistance zone.
Looking at the 4-hour chart, the pair climbed above the 23.6% Fib retracement level of the downward move from the 1.3946 swing high to the 1.3437 low. The pair even cleared the 100 simple moving average (red, 4-hour), but it stayed below the 200 simple moving average (green, 4-hour).
It seems like the pair is now facing hurdles near 1.3620, the 200 simple moving average (green, 4-hour), and the 38.2% Fib retracement level of the downward move from the 1.3946 swing high to the 1.3437 low.
A clear move above the 1.3620 zone might set the pace for a move toward 1.3700. Any more gains might call for a test of the 1.3750 zone.
On the downside, immediate support sits near the 1.3550 level. There is also a key bullish trend line forming with support at 1.3550 on the same chart, below which the pair might test the 100 simple moving average (red, 4-hour).
The next key support sits near the 1.3500 level, below which the pair could dive toward the 1.3440 support zone or the last swing low.
Looking at GBP/USD, the pair remained stable above 1.3150, spiked higher after the UK CPI release, and might aim for more upsides in the near term.
Upcoming Economic Events:
- US Existing Home Sales for August 2024 (MoM) – Forecast -0.1%, versus +1.3% previous.
- US Initial Jobless Claims – Forecast 230K, versus 230K previous.
